Ashita Tomi Pty Ltd as trustee for Esskay Super Fund v RCR Tomlinson Ltd trading as RCR Tomlinson Ltd (No 2) [2024] NSWSC 717

Ashita Tomi Pty Ltd as trustee for Esskay Super Fund v RCR Tomlinson Ltd trading as RCR Tomlinson Ltd (No 2) [2024] NSWSC 717

The settlement of $40m is fair and reasonable inter partes and inter se; deductions for legal costs, funder commission, lead plaintiff payments and administration costs are approved; common fund order is appropriate and the distribution methodology is fair to group members.

Jurisdiction
Australia
Judgment Date
13 June 2024
Procedural Posture
Representative Proceeding (shareholder Class Action) / Settlement Approval Final Orders
Outcome
Settlement approved; orders for deduction of legal costs, funding commission, lead plaintiff payments and administration costs; appointment of Settlement Administrator; dismissal of proceedings after administration; release of security for costs.
Legal Topics
['shareholder Class Action' 'continuous Disclosure' 'misleading or Deceptive Conduct' 'settlement Approval' 'funding Commission' 'distribution Methodology' 'legal Costs' 'administration of Settlement Scheme']
['equity' 'corporations Law' 'civil Procedure'] ['shareholder Class Action' 'continuous Disclosure' 'misleading or Deceptive Conduct' 'settlement Approval' 'funding Commission' 'distribution Methodology' 'legal Costs' 'administration of Settlement Scheme']

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Procedural Posture

Representative Proceeding (shareholder Class Action) / Settlement Approval Final Orders

Legal Issues

  1. 1 ['Whether the settlement is fair and reasonable as between the plaintiffs and the defendant (inter partes)' 'Whether the settlement is fair and reasonable as between group members (inter se)' 'Approval of deductions for legal costs, funder commission, lead plaintiff payments, and administration costs' 'Power to make common fund order' 'Distribution methodology for settlement sum']

Ratio Decidendi

The settlement of $40m is fair and reasonable inter partes and inter se; deductions for legal costs, funder commission, lead plaintiff payments and administration costs are approved; common fund order is appropriate and the distribution methodology is fair to group members.

Court Disposition

Settlement approved; orders for deduction of legal costs, funding commission, lead plaintiff payments and administration costs; appointment of Settlement Administrator; dismissal of proceedings after administration; release of security for costs.

Orders

  • ['Settlement of proceeding against First Defendant approved on terms of the Settlement Deed and Settlement Distribution Scheme.' 'Plaintiffs authorised to enter and give effect to Settlement Deed for group members.' 'Orders binding on group members except those who opted out.' 'The Advisory Company appointed as...