The need to establish reliance in shareholder class actions – Case Note: De Bortoli v HIH AppealAuthor : Patrick Boardman, Partner and Lisa Feltz, Solicitor

Directors and Officers

One of the most important outstanding issues in shareholder class actions is the extent to which the shareholder has to prove reliance on the alleged wrongful conduct. In De Bortoli Wines Pty Ltd v HIH Insurance Ltd (in liquidation) [2012] FCAFC 28 the Full Federal Court considered this issue in the context of a claim for misleading and deceptive conduct (in contravention of section 52 of the Trade Practices Act 1984 (Cth) which is now section 18 of the Australian Consumer Law).

Patrick Boardman and Lisa Feltz discuss the Court’s decision.