State to pay $125m Covid settlement

The Victorian government has agreed to a $125 million settlement with businesses that experienced financial losses during the state’s second wave of Covid-19 in 2020. The agreement was reached just before a 12-week trial was set to resume in Victoria’s Supreme Court. The class action lawsuit alleged that negligence in the state’s hotel quarantine program led to the second round of lockdowns, causing significant hardship for businesses.

Approximately 30 percent of the settlement will cover legal costs and litigation funding. While around 16,000 businesses initially registered for the class action, with damages potentially reaching $2.6 billion, the lawsuit was considered complex and risky. The claim centered on the government’s alleged negligence and failure to act, alongside accusations against former ministers and public servants.

Damian Scattini, a partner at Quinn Emanuel Urquhart & Sullivan, stated the settlement concludes “years of hard-fought litigation” and provides “recognition of this hardship” for eligible businesses. The settlement still requires approval from Victoria’s Supreme Court before being finalized.

(Source：News)