Class action filings bounced back in 2023 following a marked downturn in 2022, according to Allens' class action risk 2024 report. Analysis shows filings increased 43% in 2023 to 60, indicating class action risk remains a significant factor for doing business in Australia.
Consumer claims continued to dominate in 2023, accounting for 40% of filings, up from 32% last year, while shareholder claims dropped to 20% from 29% and employee claims remained stable at 15%.
'In 2023 we saw class actions pick up pace after a lull in 2022. Filings were driven by a few factors including consumer claims relating to alleged motor vehicle defects, data breaches and a number of competing shareholder claims. Employee claims related to underpayments and rest breaks remain a feature of our class action landscape,' said Partner Belinda Thompson.
The data indicates all sectors face class action risk, with heightened risk for businesses operating in retail and hospitality, banks and financial services and industrials.
'With a range of developments on the horizon, class action risk is expected to become more complex in the years ahead. Businesses need to remain vigilant and prepare for the impacts of changes to class action funding, and emerging risks such as data privacy, digital asset platforms and climate change.'
View the full report: Class action risk 2024.