Old risks remain. New ones loom.
Class action filings dipped slightly in 2024, although the total number of claims filed was broadly in line with recent years. Consumer claims—which have dominated for several years—were once again the most common form of class action, with fillings spread across a wide range of sectors. Overall, class action risk remains a reality for those doing business in Australia, and there are a number of developments on the horizon in 2025 with the potential to affect that risk.
Key trends
The Australian class action market is one of the most developed in the world. While the headline numbers have declined, class action risk is far from subsiding.
Across 2024 there were several developments that bear upon the economics of class actions and class action risk more broadly, including a number of significant judgments that are the subject of appeals likely to be determined in 2025. Over the year ahead, there is also the potential for a change in federal government and an associated shift in the legislative reform agenda. While there is uncertainty with these developments and how the market will react, it is clear that class action risk will not remain static across 2025.
In this report we provide an overview of class action filings throughout 2024 and take stock of several factors that are poised to shape the class action landscape moving forward.
Late-year rally
Continuing a trend seen over several years now, class action filings gained momentum as the year progressed. At the half-year mark, only 14 class actions had been filed, however, following a late-year surge, 2024 closed with 51 filings (with 19 claims filed across November – December).
Competing claims dip
In 2023, competing class actions accounted for almost 25% of filings. However, in 2024, less than 10% of filings were competing claims—with 47 of the 51 class actions that were filed concerning unique subject matter claims.
Novel funding structures
In 2024, a Full Court of the Federal Court gave the green light to a new funding structure that has come to be known as a solicitors' common fund order or 'SCFO'. These orders function in a similar fashion to the group costs order regime in Victoria, which permits plaintiff lawyers to obtain contingency fees for their legal services in class action proceedings. The power of the court to make SCFOs is the subject of a pending High Court appeal.
Consumer claims more popular than ever
Class action promoters remain attracted to consumer claims, which accounted for more than 40% of filings in 2024. These claims span many sectors and concern a range of subject matter, including medical and pharmaceutical products, motor vehicles and financial products.
Recalibration of shareholder claims
Following an almost 12-month hiatus, shareholder class actions returned in the second half of 2024 with four filings over the final months of the year. Despite a run of losses for plaintiffs pursuing these claims (a number of which are under appeal), the handful of filings late in the year indicates that, for listed entities, this unique form of risk still has a firm pulse.
Growth in plaintiff firms
There continues to be growth in the number of law firms pursuing plaintiff claims, including breakaway firms from established local class action practices and the emergence of foreign-based firms.
Litigation funding market remains active
Despite the introduction of the group costs order regime in Victoria and the advent of SCFOs in the Federal Court, litigation funders maintain an active presence financing class actions and have adapted to the changing market conditions. In excess of 40% of the class actions filed in 2024 involved a third-party funder, which is broadly in line with numbers seen in recent years.
Regulatory activity and offshore litigation
There continues to be a trend of class action filings following regulatory activity—particularly ASIC, AUSTRAC and ACCC investigations and enforcement proceedings. Class action promoters have also maintained a practice of launching proceedings in the wake of litigation in the United States, particularly in relation to claims involving medical and pharmaceutical products.