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ARTICLE · 01 JULY 2026

Crowley v Worley Limited: A Shift In Security Class Action Law In Australia

Gilchrist Connell
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The Full Federal Court's decision in Crowley v Worley Limited marks a pivotal shift in Australian securities class action law by endorsing market-based causation and lowering evidentiary thresholds for proving shareholder loss. This landmark ruling, combined with the earlier Brambles decision, fundamentally alters the risk landscape for ASX-listed companies and their insurers.

AustraliaLitigation, Mediation & Arbitration
Katherine Czoch
Katherine Czoch
Dan Robinson
Dan Robinson
Kaveetha Kumar
Kaveetha Kumar
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The April 2026 Federal Court decision in Southernwood v Brambles Limited marked a significant turning point in Australian securities class actions, becoming the first shareholder class action in Australia to succeed at trial. Although that decision will be subject to appeal, and the High Court is to about to consider the appeal and cross-appeal in Zonia Holdings Pty v Commonwealth Bank of Australia [2025] FCAFC 63, there is a shifting landscape in security class action law in Australia.

This was confirmed by the unanimous decision of the Full Court of the Federal Court in Crowley v Worley Limited [2026] FCAFC 78handed down on 28 May 2026, which also ruled in favour of the applicant. It is the first Full Court endorsement of market-based causation, and it adopts a lower evidentiary threshold for proving causation and loss than had been applied in earlier securities class action first instance judgments in Australia.

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