Security for costs order made against lead applicants in class action over cryptocurrency

In the recent decision of Its Eco Pty Ltd v BPS Financial Limited [2022] FCA 842, the Federal Court of Australia considered the discretion to order security for costs against the lead applicants of a class action. Kennedys acted for the Second Respondent, Billzy Pty Ltd, and were successful in obtaining security for their costs.

The decision is significant as the Court emphasised the interests of fairness and the contextual issues at play in class actions which favoured awarding security to the respondents, even though one of the lead applicants and many of the class members were individuals. It also distinguished the decision of Lee J in Abbott v Zoetis (No 2) (2019) 369 ALR 512.