In recent years, the use of third party litigation financing (“TPLF”) in Australia has resulted in a notable proliferation of class actions and other funded lawsuits. The growth of the lawsuit investment industry has occurred largely without government oversight, giving rise to serious issues yet to be addressed. As a result, the increase in TPLF-financed litigation has in turn increased the cost of doing business in Australia, a trend which will continue if the current situation remains unchanged.
The U.S. Chamber Institute for Legal Reform (“ILR”) has grave concerns about this development, which has implications not only for the Australian civil justice system and economy but globally as well. ILR supports reform of the oversight regime governing TPLF in Australia in a way that will address the problems that the growth of TPLF poses.