A proposed crackdown on class action lawsuits could have detrimental effects on future action such as stolen wages cases, says senior Shine Lawyers associate Tristan Gaven.
The warning comes after the federal government introduced tightened regulations to the class action industry that would require litigation funders to hold an Australian Financial Services Licence.
The new red tape was introduced months ahead of the results of a parliamentary inquiry into litigation funding and the class action industry, which has seen a tripling in the number of class actions launched in recent years.
Shine Lawyers this week announced it was launching a class action on behalf of thousands of Indigenous workers in Western Australia who had their wages stolen under state government legislation over decades.
Mr Gaven says there is a concern that future actions could be prevented under the changes.