Climate, crypto and cyber: The changing face of Australia's $1b class actions industry
Class action settlements topped $1 billion last financial year for the first time since before the pandemic. But the nature of cases is changing with the economy.
Class actions have emerged as a major force in the Australian legal landscape over the past two decades, a mechanism for individuals to band together to take action against large corporations and governments to seek compensation they might otherwise struggle to access. They have also emerged as a lucrative earner for the firms that specialise in them (and defend against them).
According to King & Wood Mallesons analysis, $1 billion in class action settlements were approved last financial year in Australia, the highest since before the pandemic. But just like the economy, class actions are changing and subject to trends. And that is forcing practitioners to adapt.
King & Wood Mallesons Disputes and Resolutions Partner Peta Stevenson told Capital Brief “community concerns can drive class action case numbers. The greater the community concern, the more likelihood of media coverage, a larger group of class members joining and actively contributing to a case [which] can mean more cases filed.”
It's a sentiment shared by Matt Mackenzie, a partner in law firm Gilbert + Tobin’s Disputes and Investigations Practice. "Class actions follow the zeitgeist,” he told Capital Brief.
