Australia´s Largest Shareholder Class Action Payout - Aristocrat Shareholder Class Action Settles

Key Point

• The payout makes the future class actions more likely, so corporations should get ready.

The settlement hearing in Dorajay Pty Ltd v Aristocrat Leisure Limited, also known as the Aristocrat class action, was held on 28 August. The proposed settlement was approved, resulting in the shareholders receiving $136 million, the end of five years of litigation and the largest shareholder class action payout in Australian history.

Background

The Aristocrat Class Action was commenced in November 2003 and the hearing of stage 1 (liability and the damages claim of the lead plaintiff) by Justice Stone of the Federal Court of Australia concluded on 30 October 2007.

The class action was on behalf of all shareholders who acquired an interest in shares in Aristocrat Leisure Ltd ("Aristocrat") between 19 February 2002 and 27 May 2003 and who suffered loss as a result of Aristocrat allegedly overstating its profits and failing to disclose that it would not meet