Private Funding For Class Actions Clears In Australia

Law360, New York (November 20, 2006, 12:00 AM EST) -- A recent decision by Australia’s High Court has cleared the way for private lending companies to fund class action lawsuits, setting the stage for an increase in follow-on litigation in antitrust and securities disputes, lawyers say.

The potential fallout from the High Court’s decision was highlighted last week when members of an alleged vitamins cartel agreed to a $30.5 million settlement in Australia’s first cartel-related class action suit.

For companies hoping to profit off the legal complaints of cash-strapped would-be plaintiffs, the vitamins settlement demonstrates the...
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