Government to pay $125m for COVID business settlement

The Victorian government has agreed to a $125 million settlement with businesses affected by the state’s 2020 COVID-19 lockdowns, resolving a class action brought before the Supreme Court. The lawsuit, led by 5 Boroughs NY Pty Ltd, argued that the government should compensate businesses for economic losses incurred when restrictions prevented customers from visiting physical stores between July and October 2020. The trial was scheduled for March 10th but was vacated after a settlement was reached. While the specific terms of the settlement are confidential, it includes all costs and interest.

Adam Hochroth SC, representing the class action, informed the court of the agreement, and the Victorian government confirmed the settlement, reiterating its commitment to protecting public health during the pandemic. A spokesperson stated the agreement avoids further legal proceedings.

Damian Scattini, a partner at Quinn Emanuel Urquhart & Sullivan, the law firm representing the businesses, described the settlement as a “significant outcome” and acknowledged the hardship faced by Victorian retail businesses during that period. Formal court approval is still required before the funds are distributed to eligible businesses.

(Source：PerthNow)