Soft closure, big decision: High Court grants class closure orders in Lendlease Class Action

The High Court of Australia has handed down a significant decision in Lendlease Corporation Limited v Pallas [2025] HCA 19 (Lendlease Class Action), determining that the court has the power to make soft class closure orders.

The background

The Lendlease Class Action was commenced in the Supreme Court of New South Wales on behalf of group members who held shares in Lendlease during the period 17 October 2017 to 8 November 2018 (Relevant Period). It is alleged that, during the Relevant Period, Lendlease engaged in misleading or deceptive conduct and breached its continuous disclosure obligations, resulting in loss and damage suffered by the group members.

Lendlease has effectively sought a 'soft class closure order' from the court pursuant to sections 175(1) and (5), and section 171(1) of the Civil Procedure Act 2005 (NSW) (CPA). Soft class closure orders encourage group members to register their participation in a class action for the purpose of entering into