Securities Class Actions Escalate In Australia

The last seven months have seen yet another increase in the level of securities class actions in Australia. It is a pattern that has been looming and comes as no surprise for many in the profession. However, viewed in a global context, it creates food for thought and raises the question: Do we want Australia to become as litigious as the United States? Is the system working as it should?

Here's some data that puts things in context. 

First, in the last seven months, there have been 12 new class actions threatened or filed. The targets of these actions are ASX-listed corporations, including Treasury Wine Estates Limited, Leighton Holdings Limited, WorleyParsons Limited, QBE Insurance Group Limited, Forge Group Limited, OZ Minerals Limited, Macmahon Holdings Ltd, and Iluka Resources Limited. In the case of three of the companies, there have been multiple class actions threatened or commenced. Nine ASX-listed corporations have been subject to allegations that they