Joining class actions: Is it worth the effort?

Last updated on May 15th, 2025

Have you ever thought of joining a class action? Given it involves the courts, you may have dismissed the idea out of hand as being too expensive or too time consuming.

Unless you are the lead plaintiff, however, it is hardly a burden, financial or otherwise. You can even be part of a class action without knowing it. Let’s look at the ins and outs of joining class actions.

Who can join a class action?

In Australia, most class actions are run on an opt-out basis. This means that if you meet the criteria, you are automatically part of a class action even if you haven’t been told about it yet.

There is a broad range of issues that could result in a class action, everything from a defect in the car you drive to a business misleading you about products or services. You qualify for the class action if you have experienced the same, or similar, event or circumstances and have at least one common issue of law or fact with the other group members.

Whatever the nature of the legal action, the court will at some point issue orders requiring that an opt-out notice be published and group members be notified there is a class action that involves them.

You will be given a date by which to opt out. If you do, the outcome, including any settlements, will not involve you. This does not prevent you from bringing an individual claim on the same allegations in the future.

 

 

Is it worth joining a class action?

Unless you are the lead or representative plaintiff – the person who has agreed to bring the claim on behalf of the group or ‘class’ – joining a class action is a painless process with the possibility of some reward or redress.

Just as you can opt out if you don’t want to be involved, you can also “opt in” to ensure you are kept abreast of proceedings. While you are part of the class action regardless, formally registering – usually via the legal firm’s website – ensures you will receive updates on important milestones.

You can also register on the Commonwealth Courts Portal to access information about the case, including any documents filed or orders made.

Don’t expect a quick outcome, however. Class actions can take years to resolve and even when the court finds in favour of the plaintiff, group members won’t be rolling in money.

Legal firms and/or the litigation funders can take a huge slice of the settlement pie, which may be divided between hundreds, even thousands, of group members. They will be awarded an amount that covers legal costs, including any contingency fees - also known as Group Cost Orders (GCO) - and compensation for risk. The lead plaintiff is also likely to be awarded a higher amount given the active role they played in the litigation.

 

 

What are my responsibilities if I join?

Generally, you don’t need to do anything. Group members are just that. They are not parties to the litigation and do not have to take any action or play an active role in the proceedings. It is the lead plaintiff, with their legal team, who must prove their case.

The lead plaintiff also has obligations to group members to ensure that the claim they are running – or the legal firm is running on their behalf – serves the interest of the group and is not purely for their own benefit.

As a group member, you are not liable for any costs, either. The lead plaintiff is taking the financial risk, though this is usually mitigated either by the legal firm running the case on a “no win, no fee” basis or a GCO arrangement, or by external funders who have underwritten the costs.

If a class action is successful, group members will be given the opportunity to object to, or make submissions about, the proposed settlement.

 

 

Can I withdraw from a class action?

If you do not want to be part of a class action, you need to provide written notice to the court by a set date. This will be determined when the court issues the opt-out notice, which will also outline how that notice will be published.

Group members are notified directly where possible but it might also be through advertisements in newspapers, radio or television or even on social media.

If you do not provide written notice by the due date, you are automatically bound by any judgements issued by the court and will not be able to pursue your own legal action on the same issue.

Tell us about your claim

Think you might have a claim worthy of a class action? Make a complaint with us and you might find strength in numbers.