A warning bell is being sounded as litigation funding is being cited as the reason for a class action boon in Australia, reports the Australian Financial Review.
“Australia paid out nearly $1 billion in settling class action disputes in the past year,” reports AFR, “A trend lawyers say shows no signs of slowing as they warn of a broadening range of claims by litigation funders.”
As such, pressure is “mounting” on the federal government to institute class action reforms.
“Defendant firms say class actions have ratcheted up across the board including in securities, mass torts and consumer claims, fueled by the growth of litigation funding and an increased readiness of large institutional investors to take chase.”
Read the full story here.