The class action lawsuit against Aveo is set to begin in March after more than five years of lead-up.
Brought by law firm Levitt Robinson on behalf of Aveo residents who were allegedly negatively impacted by the formerly listed retirement village operator’s “Aveo Way” contracts, the suit will be heard at the Federal Court in Melbourne; Levitt Robinson has since 2017 sought residents to join the class action, including through radio advertising.
The suit is being backed by New York-based litigation partner Galactic, which will receive up to 35% of any compensation awarded in the event of a win; Levitt Robinson last year suggested that residents involved in the suit take out a lien over their village homes to help pay for the action.
Both Aveo and Levitt Robinson have declined to comment, as the matter will soon be before the court; however, Lisa Boler, Galactic’s director of litigation for Australia, told The Age that Aveo Way had caused financial suffering to residents who sold their homes under the contracts.
“What’s being alleged is that there were misrepresentations by subsidiaries of Aveo Group Limited to the effect that where outgoing residents sell their units, they would not suffer any financial detriment by participating in the Aveo Way program. This is alleged to be quite false,” she said.
