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Number of class actions rise across Australia
The number of class actions being actioned in Australia is growing. What does this mean for local businesses moving forward?
The number of class action suits is rising in Australia.
As businesses grow and develop, the number of legal hurdles only continues to rise. Whether it is to do with employment issues, supplier problems or debtor pains, having the right legal professional as part of your framework can be more than useful.
With this in mind, The Review: Class Actions in Australia 2014/2015 has highlighted that this area of law is growing and something that businesses will need to acknowledge over the coming months.
Published by legal firm King & Wood Mallesons (KWM), the number of class action law suits almost doubled over the last financial year. Across 2013-14, there were 17 recorded cases compared to the 33 new actions launched in the 2015 financial year recently finished.
Of the 33 new class action cases, 16 related to investments, financial products and security. This suggests that recent economic trends are having an effect on what response disrupted parties are taking.
KWM partner and co-author, Moira Saville explained that businesses across a number of sectors and industries are now at risk from class action suits.
"Considering a class action is now one of the first responses to unexpected events across a wide range of industries. The combination of increasing numbers of cases and increasingly large settlements is creating a perfect storm for corporate Australia," she said.
Ms Saville stated that class action legislation was introduced for the benefit of consumers. However, it is now a useful business tool as well.
"Since then we have seen the growth of securities class actions, which have really been driven by litigation funders and the presence of large institutional investors in the class," she continued.
In the event of any legal action, your lawyers will act as a source of knowledge to guide your business. This means it is important hire the right professional, one with a track record of success.
Ethos Corporation is an Australian-owned Executive Recruitment Consultancy specialising in the $120k - $400k candidate market.
By Dominic Khedun