The COVID-19 class actions storm: A necessary spark for lasting change | Practical Law

The COVID-19 class actions storm: A necessary spark for lasting change | Practical Law

COVID-19 has increased the immediate risk of class actions. This article considers the need for law reform to stem the flow of class actions in Australia. It highlights how the ability of directors to manage the general business of their companies may be affected by the prevalence of class actions, and considers whether regulatory action, rather than class actions backed by litigation funds, is the appropriate means to prevent and manage corporate failures relating to continuous disclosure and other investor harm.

The COVID-19 class actions storm: A necessary spark for lasting change

Published on 19 May 2020Australia
COVID-19 has increased the immediate risk of class actions. This article considers the need for law reform to stem the flow of class actions in Australia. It highlights how the ability of directors to manage the general business of their companies may be affected by the prevalence of class actions, and considers whether regulatory action, rather than class actions backed by litigation funds, is the appropriate means to prevent and manage corporate failures relating to continuous disclosure and other investor harm.