The Victorian government has reached a landmark $125 million settlement with businesses impacted by the state’s controversial 2020 COVID-19 lockdown measures. The resolution comes after an intensive 12-week trial was unexpectedly postponed in Victoria’s Supreme Court just six days prior to the scheduled proceedings.
Legal representatives from Quinn Emanuel Urquhart & Sullivan, who spearheaded the class action lawsuit, confirmed the settlement was finalized on the eve of the trial. The case alleged governmental negligence in the administration of hotel quarantine protocols, which plaintiffs contended directly triggered the devastating second wave of infections that necessitated extended lockdowns from July to October 2020.
Originally, approximately 16,000 businesses had registered for participation in the lawsuit, with initial damage estimates reaching a staggering $2.6 billion. Legal experts had characterized the case as particularly novel and complex due to its unprecedented nature and legal challenges.
Damian Scattini, a partner at the representing law firm, characterized the settlement as concluding “years of hard-fought litigation” that acknowledged the extraordinary difficulties faced by retail businesses during the specified period. He expressed hope that the compensation would provide meaningful relief to eligible enterprises affected by the lockdown measures.
The settlement structure allocates 30% of the total amount toward covering legal expenses and litigation funding costs. Final approval of the settlement remains pending review and authorization by Victoria’s Supreme Court, marking the last procedural step in this significant legal proceeding.