Major Litigation lender welcomes ASIC decision on class action funding
Media release: November 5, 2009
Managing Director of Litigation Lending Services Limited, Michelle Silvers, has welcomed ASIC's decision to provide temporary exemptions for class actions currently underway that would have been disrupted by a recent Federal Court decision in the long running Multiplex case.
Ms Silvers said the transitional relief relieves the disruption which might have occurred to some 20 existing class actions.
"The Full Federal Court's decision, that funded class actions are 'managed investment scheme', had the potential to disrupt many class actions currently underway and would be of major concern to the thousands of small investors and others relying on these class actions to achieve justice," Ms Silvers said.
Ms Silvers said the ASIC decision is only a partial and temporary solution.
"The Government with ASIC will now have to consult on how future funded class actions should be regulated, if at all," she said.