Hundreds of workers in a $65 million underpayment class action would be left with “a derisory sum, if anything”, a judge has warned, under a proposed settlement that would see the lion’s share of money go to the litigation funder.
Federal Court Justice Michael Lee has deferred signing off on a $1.9 million settlement between marketing agency Appco and Canberra law firm Adero that would have left 1,172 group members with just $910,000 following deductions in legal costs.
Half of the settlement would have gone to UK-based litigation funder Harbour, although Adero has advised the funder that 25 per cent would be appropriate.
Justice Lee told a court hearing on Friday that almost $3 million had been spent on lawyers’ fees in the case and that group members could recover almost nothing.
Read the full story Financial Review.
Background: Stanwell refutes the allegations of misuse of market power being made by Piper Alderman and its litigation funder, Litigation Capital Management (LCM), as part of their entrepreneurial efforts to promote a class action against Stanwell.
If Piper Alderman and LCM commence proceedings against Stanwell, as they are threatening to do, Stanwell will vigorously defend its conduct in the appropriate forum, the courts.
Stanwell has an impeccable record of compliance with all of the laws and rules which govern our conduct within the National Electricity Market.
Piper Alderman and LCM have, we believe, been very selective in their publication of out-of-context snippets from detailed and complex regulatory reports.
Stanwell is very proud of the work our people do every day to generate electricity and make it reliably available to our ultimate owners – the people of Queensland.