Big step for shareholders in Bellamy’s class action
23 January 2017
Infant formula company Bellamy’s now faces the prospect of a wave of its largest institutional shareholders seeking redress via the Maurice Blackburn-led class action. The firm today announced it has secured a benchmark funding arrangement with litigation funder ICP.
Ben Slade, Principal at Australia's leading class action law firm Maurice Blackburn, said it was important for clients who have already lost money to have access to the best legal representation supported by a litigation funding model that featured benchmark commission rates in order to ensure more compensation back in clients’ pockets upon a successful outcome.
"Our firm has long argued that greater competition in the litigation funding arena would ultimately see better products offered for clients to drive down costs and see more money returned to those seeking justice - this offering does just that,” Mr Slade said.
“We have been working closely with ICP, which focuses solely on ASX shareholder claims and are confident that ICP’s benchmark rates on offer combined with a guaranteed safety net on the recovery upon success will give our clients greater returns and peace of mind.”
The team at litigation funder ICP - led by CEO John Walker - has put together a client-friendly offering, after consultation with some of the largest institutional shareholders on the ASX, which offers benchmark funding commissions of between 8 and 25 per cent, meaning more net returns to investors upon success.
“ICP has also included a safety-net provision that offers additional investor protection by ensuring that they won’t receive any less than 50 per cent of a net recovery (after costs are accounted for) on success. These are all innovations geared towards a better client recovery,” Mr Walker said.
Mr Walker said ICP was determined to deliver benchmark ASX shareholder claim management and funding services focused on greater access to justice and maximising shareholders’ net recoveries.
Affected shareholders that purchased Bellamy’s shares between Thursday 14 April 2016 and Friday 9 December 2016 can register claims at www.icp.net.au and institutional investors can request a funding pack by emailing BellamyClassAction@icp.net.au