Regulation Of Class Actions In Australia Revisited … Again

In Short

The Situation:Over the past several years, the Australian Government has introduced numerous major law reforms in the class actions space. These efforts included regulations covering litigation funders, who fund many of the major class actions filed in Australia, as we reported on here. The regulations, introduced in 2020, sought to reinforce a 2009 decision of the Full Court of the Federal Court of Australia that litigation funding, when utilised in a class action, was a "managed investment scheme" under the Corporations Act 2001 (Cth) ("Corporations Act"). This, in turn, made the requirements for operating a managed investment scheme applicable to funded class actions.