Lawyers look set to prosper from an upcoming raft of class actions, as shareholders are given greater access to sue insolvent companies.
The High Court s recent and controversial Sons of Gwalia decision found that shareholders with a claim against a company that enters administration could participate in the distribution of its assets.
Class actions are expected against Centro Properties Group, Centro Retail Trust and Opes Prime, and potentially against ABC Learning, Allco Finance Group, Octaviar, Credit Corp Group and Oz Minerals.
All this is terrific news for lawyers, as is the growing trend of newly retrenched people seeking to sue ex-employers. Under normal conditions these people are more likely to move into new jobs instead.
Litigation funders like IMF Australia, Comprehensive Legal Funding and Litigation Lending Services also anticipate a good year ahead.
Stock for your watchlist:
IMF IMF Australia (ASX)
The Australian Financial Review