When applied to class actions from the past 20 years, the research showed returns in 36 per cent of matters would not have covered the legal costs of running the case, let alone adequate returns to the funder.
Omni Bridgeway CEO Andrew Saker backs a 50 per cent floor on returns to class action members.
Commissioned by Australia’s largest litigation funder, Omni Bridgeway, Mr Thorpe’s report found even a 50 per cent cap would make some actions unviable and leave Australians without access to justice.
“This demonstrates the trade-off inherent in any cap on litigation funder returns,” the report said.
“It would provide higher returns to some class members, but some members would not receive returns they would have otherwise expected as fewer actions would be undertaken.”
Full story: AFR
