TIME FOR CLASS ACTION, page-5

Disclaimer:
The information provided here is for general informational purposes only and should not be construed as legal, financial, or professional advice. It does not consider your specific circumstances and should not be relied upon as a substitute for consulting with a qualified legal professional, financial advisor, or other appropriate expert.

Suppose you are considering initiating or participating in a shareholder class action. In that case, it is strongly recommended that you seek independent legal advice from a licensed solicitor or law firm specialising in class actions and corporate litigation. Additionally, engaging with a professional litigation funder or financial expert may be necessary to assess potential risks and funding arrangements.

I do not assume any responsibility or liability for actions taken based on the information provided. Always verify legal and financial matters with certified professionals before making any decisions.

Starting a class action against a company listed on the Australian Securities Exchange (ASX) involves multiple legal and procedural steps. Shareholders who believe they have suffered losses due to misconduct, misleading statements, or breaches of corporate laws can initiate this process. Here’s a structured breakdown:

1. Identify Grounds for the Class Action

Shareholders must establish legal grounds for the claim, which could include:

• Misleading or deceptive conduct (e.g., false financial disclosures or misleading market statements).
• Breach of continuous disclosure obligations (ASX Listing Rule 3.1).
• Breach of directors’ duties (under the Corporations Act 2001 (Cth)).
• Securities fraud (e.g., insider trading or market manipulation).
• Corporate misconduct (e.g., failing to act in shareholders’ best interests).

2. Gather Evidence Potential plaintiffs need to collect:

• ASX announcements and financial reports.
• Emails, internal reports, or whistleblower disclosures.
• Share price movements and trading history to show losses.
• Legal opinions from corporate lawyers or litigation funders.

3. Seek Legal Advice & Representation Most shareholder class actions in Australia are conducted by:

• Specialist class action law firms (e.g., Maurice Blackburn, Slater & Gordon).
• Litigation funders who cover legal costs in exchange for a share of the settlement.
• ASIC (Australian Securities and Investments Commission) may also investigate misconduct.

A law firm will typically assess the case for viability and determine whether it has a strong legal foundation.

1. Secure a Lead Plaintiff

A lead plaintiff (or representative plaintiff) is chosen to represent all affected shareholders. This person must:

• Be a shareholder who suffered financial loss.
• Have a strong case with supporting evidence.
• Be willing to represent the class in court proceedings.

5. Litigation Funding & Legal Costs Class actions are expensive, but funding can come from:

• Litigation funders, who pay legal costs in exchange for a percentage of the settlement.
• Law firms operating on a "no win, no fee" basis.
• Self-funded shareholders, though this is rare due to high costs.
  If funding is secured, a Class Action Litigation Agreement (CLA) is signed.

1. Filing the Class Action in Court

The legal team will file a Statement of Claim in the Federal Court of Australia (or sometimes the Supreme Court of a state).

The claim must outline:

• The allegations against the ASX-listed company.
• The legal basis for the claim.
• The financial losses suffered by shareholders.

7. Court Process & Opt-Out Mechanism In Australia, shareholder class actions follow an "opt-out" model, meaning:

• All affected shareholders are automatically included unless they opt out.
• Affected shareholders receive a Court Notice advising them of the action.

8. Settlement Negotiations or Trial Many class actions settle out of court to avoid lengthy litigation.

• If a settlement is reached, it must be approved by the court.
• If no settlement is reached, the case proceeds to trial.

9. Distribution of Compensation If successful:

• The settlement or damages awarded are distributed among shareholders.
• Litigation funders and legal fees are deducted before distribution.

10. Post-Class Action Considerations

• Regulatory consequences: ASIC may investigate further if corporate misconduct is proven.
• Market reaction: Share price volatility may continue. - (Don't give a sh!t)
• Corporate governance reforms: The company may implement new policies to prevent future issues. (Unlikely as our BoD are incompetent)

Key Considerations Time Limitations: Under Australian law, shareholders typically have 6 years from the date of loss to initiate a claim. Risk & Costs: If the case is unsuccessful, legal costs may still apply. Public Impact: A class action can affect share prices and company reputation. Would you like assistance in identifying law firms or litigation funders for this type of action?

Initiating a shareholder class action against an ASX-listed company requires collaboration with experienced legal professionals and, often, securing litigation funding. Below is a list of prominent Australian law firms and litigation funders specializing in shareholder class actions:

Law Firms Specialising in Shareholder Class Actions:

Maurice Blackburn Lawyers: Renowned for handling significant shareholder and investor claims, Maurice Blackburn has a history of achieving substantial settlements in class actions.

Slater and Gordon Lawyers: With extensive experience in class actions, they manage a variety of cases, including those related to shareholder and investor claims.

Phi Finney McDonald: A specialist class action firm dedicated to representing shareholder plaintiffs, particularly noted for handling securities class actions.

Banton Group: Founded by Amanda Banton, this firm focuses on large commercial dispute resolution and class actions, especially those involving complex financial instruments.

Litigation Funders in Australia:

Omni Bridgeway: A global leader in litigation financing, offering funding solutions from case inception through to recovery. Omni Bridgeway

Litigation Capital Management (LCM): One of the oldest litigation funders in Australia, known for expertise in insolvency and commercial claims.

Burford Capital: Provides litigation funding and risk management solutions, supporting businesses and law firms in managing legal costs and risks.

CASL: An Australian-focused litigation funder established to provide financing solutions for class actions and commercial claims.

Next Steps:

Consultation: Engage with one or more of these law firms to discuss the specifics of your case. They can provide legal advice on the viability of a class action and guide you through the process.

Funding Assessment: If required, the chosen law firm can assist in connecting with a litigation funder to discuss financing options, ensuring that legal costs do not become a barrier to pursuing the claim.

Collaborating with experienced professionals will provide the necessary support and resources to effectively manage a shareholder class action.