Joining a class action

Class actions may seem like a good idea, but there are some important things you need to know about how class actions work (like costs) before you decide whether or not to be a part of one.

What is a class action?

A class action is a lawsuit that is brought on behalf of a group of people (called plaintiffs) against someone (usually a company) for harms the company caused to the group. Generally, the claims made in a class action must be based on similar circumstances and share common issues that can be resolved by the court for the whole group.

Do I need to join a class action?

No. In Australia, if you are part of the group of people covered by the class action, you are automatically included, even if you did not sign up with the law firm. 

If you don’t want to be part of the class action, you can opt out before the deadline set by the court. 

• If you opt out of a class action, you can bring your own claim against the company. But you won’t get any money that is awarded as part of the class action. 
• If you stay in the class action, you will be entitled to any money the class wins, but you won’t be able to bring your own claim.

Is a class action a good thing?

Class actions can be an effective way to get money back for a large group of people who have been harmed by the same company. Before class actions were created, each person would have to start their own lawsuit against a company, pay for their own lawyers, provide their own evidence and do all the work that comes with running their own case. This was too expensive for many people, and courts had to hear the same issues over and over again. 

While class actions make it easier for people to get money back, they aren’t free. Most work on a “no win, no fee” basis. That means you don’t have to pay the costs of the class action if you don’t win. But if you do win, part of your payout goes to the  lawyers, or someone else who has agreed to fund the cost of the class action (often called litigation funders). This is often 30% or more or the money you win, depending on the total amount awarded to the group. 

If you are part of the class action, you could end up with a lot less than the money you lost, which is a lot to give up when it comes to your super. It could also be a lot less money than you would get if you made a complaint to the Australian Financial Complaints Authority. Making a complaint to AFCA is free and you do not need a lawyer. If you win, AFCA will award you all of the money you lost.

It can also take many years before a class action is finished.

Should I make an AFCA complaint or stay in a class action?

AFCA won’t award you the same money twice. This means that AFCA may refuse your complaint about a financial business if you are a part of a class action for the same issues you are complaining about to AFCA. Any money you get from a class action may also be taken into account if you make a claim from the Compensation Scheme of Last Resort. You will normally have to choose between being part of the class action and making an AFCA complaint.

It’s up to you to decide what is best for your situation, but it’s important to understand the pros and cons of each option. If you aren’t sure what to do, you can make a complaint to AFCA about your financial adviser now and decide what to do about the class action later. This is especially important if you are asking to be paid back lost investment earnings, because there is a proposed deadline for these complaints to be lodged with AFCA before 1 July 2027.

Are there any class actions happening now?

Yes. There are a few law firms that are investigating whether they can start a class action, so there may be more in the future.

Macquarie Wrap

In September 2026, law firm Gordon Legal announced that it started a class action against Macquarie Superannuation about the collapse of the Shield Master Fund asking for money investors would have earned if they had not invested in Shield. Lost investment earnings were not part of the money Macquarie paid back to investors in January 2026 under its agreement with ASIC.

If you want to opt out and make an AFCA complaint, you should lodge your complaint with AFCA now. If you make a complaint, AFCA will provide you with more information about what you need to do to opt out later.

Netwealth Superannuation

In September 2026, law firm Keily McCrossan announced that it had started a class action against Netwealth Superannuation about the collapse of the First Guardian Master Fund asking for money investors would have earned if they had not invested in First Guardian. Lost investment earnings were not part of the money Netwealth paid back to investors in January 2026 under its agreement with ASIC.

If you want to opt out and make an AFCA complaint, you should lodge your complaint with AFCA now. If you make a complaint, AFCA will provide you with more information about what you need to do to opt out later.