Key points
- The lifecycle typically runs three to seven years from investigation to resolution.
- Group members are not required to attend court or give evidence in most cases.
- A court must approve any settlement before it becomes binding on group members.
- Key dates — such as opt-out deadlines — are published by the court and must be observed.
- Compensation is distributed only after the settlement scheme administrator completes its work.
Stage 1 — Investigation
Before a class action is filed, the law firm investigates whether the legal requirements are met: sufficient group size, a common issue, and a viable claim against the defendant. This may take months. During this period the firm collects registrations of interest from potential group members and seeks funding.
Stage 2 — Filing and notification
Once satisfied, the firm files an application in the Federal Court or a state Supreme Court. The court issues a notice to group members — typically published in national newspapers and online — explaining the proceeding and their right to opt out.
Stage 3 — Case management and discovery
The parties exchange documents (discovery), file written arguments, and may appear before the court for directions hearings. This stage is the longest and most expensive. Expert witnesses — economists, medical specialists, industry experts — are often engaged.
Stage 4 — Settlement or trial
The vast majority of class actions resolve by negotiated settlement before reaching a full trial. If settlement is reached, the parties apply to the court for approval. The court assesses whether the settlement is fair and reasonable for the whole group. If no settlement is reached, the matter proceeds to trial and a judge delivers judgment.
Stage 5 — Distribution
After settlement or judgment, a scheme administrator distributes compensation to group members who submit valid claims. The administrator verifies eligibility, calculates individual entitlements under the approved scheme, and makes payments. Legal costs and any litigation funder commission are deducted before distribution.
This article is general information only and does not constitute legal advice. ClassActions.com.au is an independent information service and is not a law firm. If you believe you may have a legal claim, consult a qualified Australian legal practitioner.