Victoria to pay $125m to settle class action brought by businesses over Covid lockdowns
Victoria will pay $125 million to businesses impacted by financial losses during the 2020 Covid-19 lockdowns.Summary
The Victorian government has agreed to a $125 million settlement with businesses that experienced financial hardship due to the state’s second wave of Covid-19 in 2020. The agreement was reached just before a 12-week trial was set to resume in the Victoria Supreme Court. Approximately 30 percent of the settlement will cover legal fees and litigation funding.
The class action lawsuit alleged that negligence in the government’s hotel quarantine program led to the second round of lockdowns, beginning on July 2, 2020. While around 16,000 businesses initially registered for the action, with claims potentially reaching $2.6 billion, the lawsuit was considered complex and risky. The claim targeted the state government, as well as former ministers and public servants.
Damian Scattini, a partner at Quinn Emanuel Urquhart & Sullivan, stated the settlement “ends years of hard-fought litigation” and acknowledges the difficulties faced by Victorian retail businesses during that period. The settlement still requires approval from the Victoria Supreme Court before funds are distributed to eligible businesses.
(Source：PerthNow)