Class actions filings reach decade low

Mallesons’ annual report, The Review: Class Actions in Australia 2025/2026, reveals that class action filings have reached a decade low, dropping from a record 80 to 46, the fewest since 2016/17. Despite this decline, settlements approved during the year exceeded $1.65 billion, marking the second-highest total recorded in the firm’s history. Key highlights from the report suggest a nuanced landscape in class actions, with notable trends and implications for both plaintiffs and the legal environment.

The decrease in new filings can be attributed to the exceptionally high volume reported in the previous year, which was driven by a cluster of similar actions. Nevertheless, a substantial number of settlements – at least 20 – were approved, including five that exceeded $100 million. Mallesons Partner Moira Saville noted that the shareholder class action judgments represented significant advancements in the field, stating that the fall in filings does not tell the full story. She highlighted that "Brambles and Worley mark an important shift after a series of unsuccessful shareholder cases and the High Court’s decision in Zonia could materially influence what comes next."

There appears to be a resurgence in shareholder claims, with companies like Brambles and Worley achieving crucial plaintiff wins that could redefine standards for shareholder loss established in the High Court's developments. Regulatory pressures were also prominent, as 15 of the new class actions in the report directly overlapped with existing regulatory proceedings.

The Federal Court led the filings with 28 cases, while the Victorian Supreme Court accounted for 13. As Victoria remains the only jurisdiction permitting group costs orders, it is set apart from other regions. Mallesons Partner Alex Morris emphasised the importance of this distinction, stating that "Victoria’s group costs order regime continues to distinguish it from other jurisdictions. Similar reforms federally or in NSW could influence both the economics of bringing class actions and where they are filed."

Employment-related claims held steady, with 13 new actions filed, just behind consumer claims, which totalled 16. As the report continues to explore new frontiers, it highlights potential risks associated with emerging concerns such as artificial intelligence, cyber breaches, and ESG-related claims. Peta Stevenson, another Mallesons Partner, commented on the overarching trend, asserting that "We do not expect the fall in filings to represent a lasting reduction in class action activity. Plaintiff firms and litigation funders are increasingly looking to new regulatory regimes in Australia and claims being tested overseas for the next areas of opportunity."

The Review: Class Actions in Australia 2025/2026 provides a comprehensive analysis of recent class action developments and outlines the issues anticipated to shape the legal landscape in the upcoming year, an indication that while filings may be low, the stakes in class actions remain high.