Recently, the Australian Parliamentary Joint Committee on Corporations and Financial Services released a report calling for more stringent oversight of the country’s “highly unique” litigation funding industry.
“Regulators and lawmakers in Australia would be wise to heed the advice of the Committee’s report. The country has experienced major growth in the amount of class action litigation in recent years,” Harold Kim wrote in a blog post. “This report offers a look under the hood of that growth and offers solutions to ensure a fair system for all involved, from class members to defendants.”
The committee was formed to investigate the robust litigation funding and class action industry in Australia. The 454-page report, says Australia “has become a global hotspot for international investors, including many based in tax havens and with dubious corporate histories, to generate investment returns unheard of in any other jurisdiction – in some cases of more than 500 per cent.”