Under-fire aged-care group facing second class action
AVEO Group is facing a possible second class action against the aged-care company over its alleged use of “unfair and unconscionable” contracts.
The retirement home owner and operator’s shares slipped yesterday after legal firm Maurice Blackburn announced plans to run a nowin no-fee class action for former residents. Maurice Blackburn said the class action would call for stronger rights and protections for older Australians and their families who are allegedly exposed to confusing and complex contracts.
The retirement communities owner has come under fire in recent months following heavy media coverage, a Victorian Government inquiry into problems in the retiring housing sector, and a consumer watchdog investigation.
Another law firm, Levitt Robinson Solicitors, also announced plans to launch a class action against Aveo in June.
Maurice Blackburn class action principal Brooke Dellavedova said a no-win, no-fee class action could be the best option for those affected by unnecessarily complicated and unfair contracts.
“We don’t think it’s fair or legal to subject elderly people to complex and confusing contracts that contain unfair terms,” Ms Dellavedova said. “If enough people want to take action against Aveo, then we will look to step in and stand up for these people.” Consumer Action Law Centre chief executive Gerard Brody welcomed the opportunity for a class action regime saying residents and their families have previously struggled to access justice due to court and tribunal expenses