A recent influx in class actions filings – with more proceedings having been filed in FY2024–25 than in any previous financial year – highlights the pressure on lawyers to wade through a dispute resolution environment that gets ever more complex.
Recent analysis from Professor Vince Morabito of Monash University has revealed that class actions in Australia have now surpassed 1,000 filings, with more class actions filed in the financial year ending 30 June 2025 than in any previous financial year. The recent influx of filings underscores the intense pressure on corporate legal teams to navigate an increasingly complex dispute resolution landscape.
According to the report, Rethinking Risk: Inside Class Actions in Australia, from global law firm Herbert Smith Freehills Kramer (HSF Kramer), the growth in the class action landscape is fuelled in part by an ever-changing risk profile, legislative reforms, developments in case law, growing sophistication in the litigation funding market, and the availability of group cost orders in Victoria.
The class action landscape continues to evolve at pace. According to partner and global co-head of class actions at HSF Kramer, Jason Betts, class action risk goes beyond listed companies and financial services, with growing class actions in the areas of privacy and data, employment, mass tort, and consumer claims.
“These factors continue to make the Australian class action market fertile, and that, understandably, should give Australian business real cause for concern,” Betts said.
Getting on the front foot
For companies, the trend represents more than just a rise in filing volume.
“The proceedings that are commenced are increasingly complex, often involving parallel regulatory investigations, novel or rare causes of action, and multi-jurisdictional or global scope,” Betts said.
A survey conducted by HSF Kramer revealed that organisations are increasingly looking to get in front of the problem by seeking to take steps to address the underlying causes of litigation exposure.
“Companies are taking a variety of actions aimed at addressing root cause, such as through review of privacy and cyber frameworks and strong corporate governance, including corporate disclosure frameworks and uplifts in board and senior management accountability structures,” Betts said.
“For a significant portion of companies, however, it appears that risk assessments do not address class actions directly or in any great detail. In light of the evolving risk landscape, companies may be best served by a holistic risk assessment and targeted assessments relating to class actions risk.
“In other words, there appears to be greater awareness of the need to get in front of the risks but, perhaps, less awareness of how best to manage the risks pre-emptively in the overall litigious context.”
Areas of greatest concern
Cyber and data security risks are a top concern among companies, and HSF Kramer anticipates that a growth in regulatory proceedings and class actions will run in parallel.
“There are certain sectors where the risk is particularly acute, including insurance industries and government, given the volume and type of personal data held,” HSF Kramer partner Melissa Gladstone said.
“The importance of managing risks relating to privacy was also confirmed by the recent Privacy Act reforms, while other areas of class action risk remain prevalent, including ESG, consumer claims, employment underpayment claims, and shareholder claims.”
Alongside the growing scale and complexity of class actions that are filed, Gladstone believes that we now have a mature litigation funding market and settled legal principles around the award of contingency fees in Victoria.
Commenting on the buzz around litigation funding and returns generated by the recent High Court decision in Blue Sky and an ABC Four Corner’s investigation into the proportions of settlement proceeds which are distributed to class action group members, Gladstone previously told Lawyers Weekly that Victoria will remain the jurisdiction of choice for class action filings and we may see class action funding reform back on the political agenda.
“Group members are located all over Australia – sometimes in other countries – and almost every state has a mirrored regime. It raises the question of whether jurisdictions should be chosen due to favourable funding models or on longstanding criteria such as the location of the parties or the substance of the alleged wrong,” said Gladstone.
Against this backdrop, Captivate Q – Lawyers Weekly’s sister brand – has launched a Law Mastery series, offering senior legal professionals the practical tools and insights needed to navigate this evolving environment. The first event, a Litigation & Dispute Resolution Masterclass, in partnership with HSF Kramer, will take place on Monday, 3 November, in Sydney.
Tailored for senior litigators, general counsel, in-house investigations teams and corporate governance leaders, the Litigation & Dispute Resolution one-day program covers regulatory investigations, setting up and conducting internal investigations, class action risk and defence strategies, and preparing for mediation and trial.
Tickets are live now and are strictly limited to 40 places. Click here for more information.
Click here to join the Law Mastery LinkedIn forum.
