Focus: Order for security for costs
Services:
Financial Services,
Disputes & Litigation
Industry Focus:
Financial Services
The National Australia Bank recently obtained an order for
security for costs against the plaintiffs in a class action suit
against NAB. The plaintiffs described the application as
"extraordinary in size and unprecedented in Australian
history"1. However it was not so much the size of
the security for costs order, but the principles found in favour of
NAB that makes this a very useful guide, and a warning to funders
of class actions.
In 2009, Maurice Blackburn issued various media announcements
that it proposed to issue a class action against NAB on behalf of
various shareholders, who had acquired NAB shares between 1 January
and 24 July 2008. It was alleged that NAB had failed to disclose
its exposure to a portfolio of collateralised debt obligations. The
plaintiffs were funded by a commercial litigation funder. NAB
retained the firm
