Adviser Class action & realamp web site, page-917

my bet is that there will be a settlement (out of court). Of how much, I don't know.
- The lawyers don't want this going through the court - they are not being funded by litigation funding, the costs incurred for them is huge until pay day, and there is always a risk about the quantum. They will want to settle and take their cut, without the ongoing risk and costs. That's how these firms work. Even though they said they hadn't agreed on a settlement, and therefore pursuing through the courts, these are ordinary games played in corporate litigation - they can always settle and the legal system encourages mediation and out of court settlements, because
- the legal system has a backlog and is choking... I know, because I have done reviews for the courts and AGs
- AMP doesn't want this going through the court for obvious reasons
- who knows, some (or possibly the majority) of the claimants might not want to drag this out. I wouldn't want to, I'd want to settle. It's the risk discounting factor at play today. Guaranteed $100 today, or prospect of $150 in 3 years, discounted at 15-20% per annum for the risk/uncertainty and opportuinty cost of that money hanging in the balance. I know which one I would pick.

The whole process is costly and exhausting for all parties involved. So far no settlement, but they can settle whenever. I have been privy to these processes in the past.

And no question, the law firm wouldn't have got involved unless they knew there was a 99-100% chance of a pay day.