Aveo defiant on class action heat

AGED care company Aveo Group has denied taking advantage of its elderly residents after a law firm said it may launch a second class action against the company for allegedly using “unfair and unconscionable” contracts.

Lawyers Maurice Blackburn yesterday said it will look into running a no-win no-fee class action for former residents, calling for stronger rights and protections for older residents and their families.

The retirement communities owner has come under fire in recent months following a Victorian Government inquiry into problems in the retirement housing sector, and a consumer watchdog investigation.

Law firm Levitt Robinson Solicitors announced in June it plans to launch a class action against Aveo.

Aveo said it is not aware of a class action from Maurice Blackburn, and has not been contacted. Chief executive Geoff Grady denied Aveo has acted wrongly, saying it has and always will act with the best interests of its residents.

“We vigorously deny any suggestion to the contrary and we are confident that we can show that we have at all times met our statutory and other obligations, and our commitment to residents,” Mr Grady said in a statement.

Aveo shares have dropped almost 20 per cent since allegations were raised in the media in June, and fell 7¢, or 2.8 per cent, to $2.47 yesterday.

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