Hey guys FYI the following regarding a proposed cap in Class...

Hey guys FYI the following regarding a proposed cap in Class action fees.
News article Link:Litigation Funders and Lawyers Face 30% Fee Cap in Australian Class Actions | Law.com International


'Fees for class action lawyers and litigation funders could be limited to a total of 30% of any payout under proposed new Australian laws introduced on Thursday. The laws, which have yet to be passed by Parliament, are designed to give courts more power to oversee the distribution of class action proceeds between the litigation funder and plaintiffs, the government said in a statement.

'Courts would be empowered to approve or vary the share of proceeds to which plaintiffs are entitled to. The idea is to ensure the distribution is fair and reasonable, and the courts would be supported by independent experts at the funder’s expense. The proposed new law would establish a rebuttable presumption that a return to the general members of a class action litigation funding scheme of less than 70% of their gross proceeds is not fair and reasonable.'

[ ... ]

'The government says this will “ensure that actions involving litigation funders are commenced with the genuine support of plaintiffs”.

'But head of class actions at Shine Lawyers Jan Saddler said the change will cause significant delays to launching class actions and will mean that cases will cost more and take longer resolve. “Cases worth tens of millions of dollars with modest individual claims run the real risk of not being run at all, resulting in a windfall for the wrongdoer and injustice for the victims. It is a smack in the face for all Australians who believe in the right to justice for all, rather than just supporting the big end of town,” she said in a statement.

'The government’s action comes in response to a parliamentary report recommending a cap on class action fees, after the inquiry found litigation funders were making profits unheard of in any other country. Current regulation of class actions and litigation funding was “too light touch” and greater oversight of the industry is required, the report by the Parliamentary Joint Committee on Corporations and Financial Services’ report found in its report in January.The government launched the inquiry after calls by business leaders and business groups to regulate litigation funding and class actions amid claims businesses are being unfairly targeted.'