Labor says decision called into question the legal basis for former government’s ‘absurd attempt to regulate funded class actions out of existence’

The federal court has removed a barrier to class actions imposed by the former Coalition government, a decision the new attorney general, Mark Dreyfus, has welcomed as a “victory for ordinary Australians” seeking to pursue justice against big corporations or governments.

In 2020, the former government imposed a costly regulatory burden on litigation funders – entities that bankroll notoriously expensive class actions – to define them as managed investment schemes.

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