Victorian Government Settles $125 Million Class Action Over Pandemic Lockdowns
Businesses impacted by one of the world's longest COVID-19 lockdowns will receive a substantial $125 million compensation package from the Victorian government, following the resolution of a major class action lawsuit. The settlement, which was announced in the Supreme Court of Melbourne, brings an end to protracted legal proceedings initiated by retail enterprises that suffered significant financial hardship during the state's stringent 2020 restrictions.
Legal Battle Concludes with Confidential Settlement
The class action, representing numerous businesses including lead plaintiff 5 Boroughs NY Pty Ltd, argued that the state government should be held accountable for economic losses incurred when customers were prevented from visiting physical stores between July and October 2020. Barrister Adam Hochroth SC, representing the class action, informed the court that the parties had reached a settlement agreement, vacating the trial that was scheduled to commence on March 10.
The $125 million settlement amount is inclusive of all costs and interest, though the specific terms of the settlement deeds remain confidential at this stage. The settlement must still receive formal approval from the court before funds can be distributed to eligible businesses.
Government Maintains Pandemic Stance While Avoiding Further Litigation
Outside the courtroom, a Victorian government spokesperson confirmed the settlement, emphasizing that the state continues to stand by the measures implemented during the pandemic to protect public health. "The state has reached an agreement to resolve the matter," the spokesperson stated. "The $125 million settlement, agreed to between the parties, will avoid further protracted legal proceedings."
This resolution allows the government to maintain its position on pandemic safety while circumventing additional lengthy and costly court battles.
Significant Outcome for Affected Retail Businesses
Quinn Emanuel Urquhart & Sullivan, the law firm representing the class action, described the settlement as the culmination of years of determined litigation on behalf of impacted businesses. Partner Damian Scattini highlighted the extraordinary challenges faced by Victorian retail enterprises during the lockdown period.
"This is a significant outcome for eligible businesses. July to October 2020 was an extraordinarily difficult period for Victorian retail businesses," Scattini said in an official statement. "The $125 million settlement that we have achieved on their behalf is recognition of this hardship and I hope it provides some measure of relief for eligible businesses."
The settlement approval application has been adjourned to a date yet to be determined, marking the next procedural step in finalizing this landmark compensation arrangement.
