Class action specialist, Maurice Blackburn, has been trying to launch a class action against Aveo on behalf of former residents of its retirement villages since the Four Corners program in June 2017.
As we reported here, the law firm believed departing residents were disadvantaged when Aveo sought to change contracts for incoming residents (with original contracts being 10+ years old on average).
After hearing from “many people” about their experiences with (and alleged mistreatment by) Aveo Group, due to the “wide variety” of contracts, contracting parties and relevant terms, the firm has decided not to move forward with the class action.
Maurice Blackburn said it would be “difficult to run the cases effectively and efficiently” as a class action law suit but consider that many people may still have a viable claim against Aveo.
The real story looks to be that they just couldn’t find enough aggrieved ex-residents despite a radio and press campaign.
This is good news for the sector operators and residents. The outcome of the Maurice Blackburn action would likely be that village contracts could never be changed from one generation of residents to the next. The new world of 'choice' would be jeopardised for instance.
Interesting to note that retirement property developer Lendlease is also currently facing a class action from investors over a November share price plunge – and are also being represented by Maurice Blackburn.
Aveo still has a class action led by Levitt Robinson – but it too has stalled.
