Australian Court "Closes Class"

Dismisses Claims of Class Action Members Prior to Judgment or Settlement

Key Points

• In Australia, class actions operate by way of an opt-out model that does not require the consent or identification of class members at the time the proceedings are commenced. As such, there can be significant uncertainty in settlement negotiations as to which (and accordingly how many) members will ultimately register to share in any settlement amount. To conclude a class action in which the class members receive compensation or other personal benefit, it is necessary to identify the class members. This usually occurs through a class closure process by which class members must register their participation.