Three class action trials collectively impacting more than a million Australians are due to begin in the Supreme Court on Monday.
Class actions, also called group proceedings, are cases where a group of people argue they have been wronged in similar or related circumstances.
Each action is represented by one of two lead plaintiffs but there can be anywhere from a few to a few million people in the class or group who meet the specific criteria of the action.
Chief Justice Richard Niall said the number of class actions had significantly increased in the past five years.
“Class actions involve a considerable amount of work for the court and the judicial officers involved,” he said.
“A preliminary argument in the Arrium action progressed to the High Court, while the Nuix matter started out as three separate class actions.
“The Court is working hard to resolve and determine these cases and it’s great to see three separate class action trials starting on the same day – something no one can remember seeing before.”
All three judge-alone trials will be available to watch online:
The Nuix and Arrium trials are expected to run for 8 weeks while Sportsbet is set to run for 3 weeks.
William Lay & Daniel Joseph Batchelor v Nuix Limited & ors (S ECI 2021 04360)
The plaintiffs claim that Nuix Limited’s revenue forecasts in the Prospectus for its Initial Public Offering issued on 18 November 2020 contained omissions and statements that were misleading or deceptive, that Macquarie Capital (Australia) Limited is liable as an underwriter, and that Mr Daniel Phillips is liable as a director and representative of Nuix at the time.
The plaintiffs also claim that Nuix made public announcements after it commenced trading on the ASX in connection with its revenue forecasts that were misleading or deceptive, and that Mr Phillips was knowingly concerned in this conduct.
As a result of the contraventions, the plaintiffs claim the Nuix ASX share price was inflated between 18 November 2020 and 29 June 2021, and investors who purchased shares in the IPO or during that period suffered loss and damage. Nuix, Macquarie, and Mr Phillips deny the allegations.
Bogan, Anthony & Anor v The Estate of Peter John Smedley (deceased) and Ors (S ECI 2020 03281)
The plaintiffs claim four former directors of former iron ore miner and steel producer Arrium Limited (its former CEO, successive Chairmen and Chairman of its Audit Committee) and Arrium’s auditors KPMG made misleading or deceptive statements in Arrium’s published financial results, and failed to disclose material impairments of Arrium’s assets that inflated its share price. The former directors and KPMG deny the allegations.
Jeremy Bergman v Sportsbet Pty Ltd (S ECI 2024 07057)
This is a group proceeding brought on behalf of persons who placed one or more bets using Sportsbet’s ‘Fast Code service’ from 24 December 2018 to 24 December 2024, and lost more money than they won.
It is contended that in using the Fast Code, Sportsbet contravened the Interactive Gambling Act 2001 (Cth) (IGA) by providing an in-play betting service by a means that was not a telephone betting service. It is alleged that the betting contracts with group members are void or were breached as a result and that by representing that the Fast Code service was lawfully provided, Sportsbet engaged in misleading and deceptive conduct under the Australian Consumer Law. The group members seek damages and restitution. Sportsbet denies the allegations.