Mediation can be a useful tool in shareholder class actions as in other types of litigation. There are a number of obvious advantages to defendant corporations in particular: minimising legal costs, reducing further publicity and impact on share price, and avoiding the considerable distraction to the business of defending the class action to trial.
However, there are certain issues and risks for defendants in shareholder class actions which are not necessarily found in other disputes and which pose some unique additional challenges for the parties when contemplating mediation.
These issues are examined by David Taylor and Annie Leeks, senior associates in our Sydney and Brisbane offices respectively, in the recently published article ‘Mediation in shareholder class actions: a defendant’s perspective‘. (This article was first published in the LexisNexis Australian Alternative Dispute Resolution Bulletin Volume 2, No. 2, May 2015.)