Class Actions

Institutional Investors:  We have represented a number of institutional investors who have sought advice on litigation funding agreements and participation in the Aristocrat class action and AWB class action.

Securities Class Actions

King v GIO:  Clayton Utz acted in Australia's first securities class action, which involved a claim by some 23,000 shareholders against the company formerly known as GIO Australia Holdings Ltd. The shareholders claimed almost A$400 million in damages after alleging they were misled and deceived when the company failed to warn about risks associated with the company's reinsurance division at the time the company advised shareholders to reject a takeover bid from AMP Insurance Investment Holdings Pty Ltd. Clayton Utz represented a financial adviser which assisted the company in its defence of the hostile takeover bid. The matter involved 13 respondents and cross-respondents, close to 25,000 documents and consideration of whether shareholders were misled by a Part B Statement (statement made by the target company) under the Corporations Act as well as the duties of accounting advisers, directors and managers and valuers of takeover bids.

Harris Scarfe Holdings Limited:  Clayton Utz represented the former executive chairman of Harris Scarfe. The applicant commenced an action on behalf of 3,191 shareholders, with an estimated 11,300 shareholders fitting the group definition. The proceedings involved allegations that the directors of Harris Scarfe misrepresented the value of the shares in the company, giving rise to claims of misleading and deceptive conduct, breach of the prospectus provisions and the duties imposed on directors. The matter was settled on favourable terms in October 2006 - a $20 million claim was settled for $3 million.

Economic Loss Class Action:  Clayton Utz represents an international airline in the defence of two multi-respondent Federal Court cases. This is one of the substantial number of economic loss class actions being promoted by the Australian plaintiffs’ firms.

Cartel Class Action:  In Australia’s largest private enforcement claim, Clayton Utz acted in the vitamins cartel class action proceedings. Our team was able to utilise interlocutory applications to substantially reduce the size of the class, resulting in the discontinuation of three-quarters of the claims. The matter has now been settled, with the terms commercially advantageous for our client.

Longford:  Acting for an interested offshore insurer, Clayton Utz actively monitored each stage of the Longford proceedings from the Federal Court through to their primary resolution in the Supreme Court of Victoria. This role involved strategic review and advice of the action as it progressed towards settlement against the prospect that the outcome triggered applicable indemnity layers.

Product Liability Class Actions: The Clayton Utz Class Actions team acts or acted for the defendants in most of the product liability class actions that have been commenced in Australia. These include the multi-manufacturer breast implant litigation, intrauterine contraceptive devices, benzo-diazapenes, Roaccutane class action (including the proceedings in the Supreme Court of Victoria), the Australian Fen-Phen proceedings, the Helix litigation, a series of class actions involving implantable cardiac pacemakers that were ultimately determined by the High Court of Australia and the current VIOXX litigation (including the proceedings transferred from the Supreme Court of Victoria to the Federal Court).

Beef Contamination:  We represented a supplier of cotton trash in proceedings which followed the contamination of beef cattle with a chemical, CFZ, rendering the meat unfit for export and reducing its price on the Australian domestic market.

Sydney Water:  We defended Sydney Water in two class actions following a boil water alert after the contamination of Sydney water supplies, the personal injury class action being discontinued and the financial loss claims being promptly settled in the first large scale settlement scheme to be approved in Australia.

BP Australia Limited:  We represented BP Australia Limited in the defence of representative proceedings in the Supreme Court of NSW. The plaintiffs were attempting to recover amounts paid to BP in respect of licence fees subsequently found to be unconstitutional. We had the proceedings struck out as not properly commenced, resulting in our client recovering costs.