Australian Federal Court Adopts Novel Approach In Dealing With Competing Class Actions

In Short

The Situation: Competing class actions, particularly in relation to shareholder claims, have increased in Australia and imposed unnecessary costs on respondents. In Perera v GetSwift Limited [2018] FCA 732, Lee J of the Federal Court of Australia was tasked with managing three competing class actions.

The Result: His Honour ultimately stayed two class actions while allowing the third to continue.

Looking Ahead: The judgment provides useful insight into the various ways in which a court might deal with competing class actions, as well as the justifications and sources of power that may be relied upon to permanently stay a class action.  

Respondents in securities class actions should be aware that: