Australia: Brookfield Ruling Derails Litigation Funders Down Under

australian-flag-230In Australia, “litigation funders” have been riding high for several years now. As previously discussed here, publicly-traded companies such as IMF (Australia) Ltd., the dominant class action litigation funder in Australia, have reported surging earnings even in the worst of economic times due to the rise of class actions in Australia and the absence of any contingent fee model there to fund such cases.

A recent decision by Australia’s Federal Court in the Brookfield Multiplex Limited case, however, has reportedly stopped the entire litigation funding industry in its tracks. Full details are available in this post on my Enforcement Action blog over at Compliance Week.