2026 set to be a ‘significant year’ for class action, report finds

In its annual Class Action Risk Report, the international law firm reviewed 2025’s class action landscape, revealing that while the “overall risk environment remains largely unchanged”, filings continue to climb to new heights.

The report kicked off by pointing to a record pace of filings, with 36 class actions lodged by the end of June.

However, it highlighted that the “late-year filing rally” the industry has become accustomed to did not materialise this time, with only seven cases commencing across November and December.

Allens also highlighted that employment claims were a major driver of last year’s class action activity, with 28 employer-related cases filed – representing 51 per cent of all filings.

This marks a significant jump from previous years, when such claims typically accounted for around 15 per cent of filings since 2019.

Looking ahead, the firm predicts that 2026 will be another pivotal year for class actions, with a range of developments set to reshape the landscape and redefine the way risks are managed.

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One of the major factors Allens identified in the report as likely to shape this trend is the number of significant court decisions and High Court appeals set to unfold over the coming year.

In particular, the firm pointed to the Zonia and Baron shareholder class action proceedings as a key flashpoint, with the appeals expected to place critical issues before the High Court, including the “approach to causation, the proper measure of loss in shareholder class actions and the threshold for establishing disclosure breaches”.

Additionally, Allens noted that this year, the progression of high-profile cases like Optus and Medibank will test whether cyber and data breach class actions can succeed without demonstrable financial loss.

The outcomes are expected to provide crucial judicial guidance that could redefine recoverable damages, liability exposure, and settlement dynamics across the class action landscape.

While court proceedings are expected to play a significant role this year, the report also highlighted that regulatory enforcement is likely to shape filings and further influence the evolving class action environment.

Allens predicted that heightened regulatory focus on consumer issues, fuelled by cost-of-living pressures, will result in continued Australian Competition and Consumer Commission (ACCC) investigations and reform initiatives that could “drive greater competition class action risk”.

On top of that, the report highlighted that proposed laws targeting unfair trading practices, particularly in high-risk areas such as subscription traps, signal a “tightening regulatory environment” that could significantly increase class action exposure for corporates in 2026.

With these matters set to unfold this year, each carrying the potential to significantly shape the class action landscape in Australia, Allens cautioned that while they are closely watched, others should also keep a “close eye” on these developments and their broader implications.