Live by the litigation funder, die by the litigation funder?Lawyers for Brookfield Multiplex have reportedly revealed that overseas litigation funders who are bankrolling the securities class action against their client may have operated an unregistered management investment scheme. The failure of the Singaporean and Canadian funders to register as Australian businesses “has cast doubts over the validity of funding agreements, which Brookfield Multiplex lawyers Mallesons Stephen Jaques claim are tantamount to operating an unregistered management investment scheme,” The Australian reports.
Lawyers for Brookfield Multiplex sought injunctions against Singapore-based International Litigation Funding Partners and Canadian group Ontario Inc which, if granted, would at least temporarily halt one of Australia’s largest and most expensive class actions. The Australian reports that this development “potentially threatens the entire class action run by high-profile plaintiff lawyers Maurice Blackburn” because the funding agreements would be in doubt, and there would be questions about the validity of earlier proceedings.
Neither of the foreign companies were in court yesterday when barrister Scott Nixon alleged both had contravened the Corporations Act by operating an unregistered investment scheme.
