to the extent you are saying that THIS KIND of class action has not succeeded in this country before then i take your point.
if makattack is claiming "success" means a win a trial then he is flatly wrong - no issue, hasn't happened. these cases never get to trial. far to expensive, far to risky. i invite him to prove me wrong by citing an actual court judgment in a successful claim like this.
if by "success" he means a settlement payout anywhere close to the amount of the damages then he is wrong again, just hasn't happened.
class actions involving shareholder loss claims TYPICALLY FAIL OR SETTLE FOR A FRACTION OF THE CLAIM AMOUNT YEARS AFTER they are commenced. this happens for a reason.....the cases are unbelievably risky, time consuming and expensive to run. also, the liabilities in claims like this are TYPICALLY INSURED. the insurers don't like paying out and they defend the cases very hard to avoid liability.
on another thread Makattack mentions the Aristocrat class action (based on events occurring 6 years ago and completely different to the CNP claim) conceding it was an out of court settlement, but he claims the settlement payment was $200 million. Last week the Age reported the settlement to be for a payment of $40 million against a total claim amount of nearly $400 million.
he also cites the GIO class action as an example of a successful class action relevant to the CNP one (???? ...but that case was about GIO rejecting a takeover offer on the recommendation of the GIO board). here are some FACTS about that case:
- IT NEVER GOT TO TRIAL - IT SETTLED OUT OF COURT FOR $112 MILLION - THE SETTLEMENT TOOK 4 YEARS TO ACHIEVE - THE CLAIM AMOUNT WAS WORTH 10 TIMES MORE THAN THE SETTLEMENT - GIO SUED ITS ACCOUNTING ADVISORS FOR BAD ADVICE IN THE CASE - THE ACCOUNTING ADVISORS PAID HALF OF THE SETTLEMENT - THE ACCOUNTING ADVISORS WERE INSURED AGAINS THE CLAIM - GIO WAS ALSO INUSRED AGAINST LIABILITY FOR THE CLAIM - SEVERAL INSURERS ARE KNOWN TO HAVE PAID AT LEAST HALF THE CLAIM AMOUNT - THERE IS EVERY REASON TO BELIEVE THAT INSURANCE ALSO PAID MUCH IF NOT ALL OF THE BALANCE OF GIO'S SETTLEMENT
why so much ignorance on Hot Copper about class actions????
its not like class action data is a big secret, most of these issues can be googled.
cheers
CNP Price at posting:
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