Class action filings are projected return to the all-time-high filing rates of 2017 – 2021
According to Allens' Class Action Risk interim update, 28 class actions were filed in the first half of 2023, double the 14 filed in the equivalent period in 2022.
The increase in filings has been fuelled by the first significant wave of cyber class actions following several high-profile data breach incidents, as well as a rise in competing class actions.
'This first foray into data breach class actions consist of shareholder claims focused on disclosures around the management of cybersecurity risks and consumer claims resulting from the Optus and Medibank data breaches. Five of the filings so far this year relate to this, and we can expect data breaches and cybersecurity to present ongoing risk to businesses,' said Partner Belinda Thompson.
Consumer and shareholder class actions continue to dominate filings, accounting for more than 75 per cent of all class actions for the year to date. At a sector level, those most under pressure in the first half of 2023 are industrials (28 per cent of filings), infrastructure, power and utilities (21 per cent), retail, hospitality and leisure (21 per cent) and banks and financial institutions (18 per cent).
Read the interim update.