As part of the arrangement, Maurice Blackburn, the law firm representing the plaintiffs, will receive $8.5 million to cover costs and disbursements. Additionally, $1.36 million has been allocated for managing the distribution of settlement funds. The lead plaintiff will obtain $30,000 to compensate for personal time and stress endured during the case.
Justice Patricia Matthews of the Supreme Court of Victoria gave her approval after observing that no objections were raised by group members. Her detailed reasons were released this week, affirming the final settlement decision reached in late June.
The core of the lawsuit rested on the sale of add-on insurance products through MTA Insurance, acquired by Suncorp in 2014. These products, now under the AAI subsidiary, were claimed to hold little to no consumer value, allegedly contravening legal standards in their sale practices.
Despite denying all allegations, Suncorp agreed to the settlement in February, having since ceased selling add-on covers through car dealerships. The decision to settle was based on reducing the time and financial uncertainty that a formal trial would have involved.
Justice Matthews highlighted that a trial was projected to last 12 days, followed by potential lengthy appeals, which would prolong the resolution. By settling, the distribution of funds to plaintiffs is expected within 13-14 months, providing more immediate relief to affected parties.
