Ive taken a look at the cost agreement and its not a fee of $2,200 but $2750 inc 25% uplift factor and GST. If the case gets a litigation funder further cost will be added per shareholder although it really comes out of the win pool only for successful cases.
Therefore to be successful at receiving anything I believe the following needs to happen:
A) Case needs a win outcome either through settlement before court day or in the courts. If no win then no cost to shareholder.
B) Amount of win needs to cover all legal costs, litigation funder costs and have a remaining amount that can be divided up amongst shareholder participants in the CA. In some cases the unsuccessful defendant will pay some or all of the costs of the successful party.
Therefore if you assume $2750 legal costs and another 25% of $2200 for litigation funder each shareholder cost is $3300. Based on 3000 shareholders participating (assumption only) thats $9,900,000 of cost. For anything to be returned back to shareholders the win needs to be $10M or more as a very simple calculation.
I welcome anyone with past experience to correct my numbers or provide a better analysis.
DSH Price at posting:
35.5¢ Sentiment: None Disclosure: Held
