Extra class action looming for Aveo
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.
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 the past couple of months following a Victorian government inquiry into problems in the retirement housing sector and a consumer watchdog investigation.
Another 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 the company had acted wrongly, saying it had and always would 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.
Maurice Blackburn class action principal Brooke Dellavedova
said a no-win, no-fee class action – which means clients will not be out of pocket if the case is unsuccessful – could be the best option for those affected.
“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 news of potential legal action, saying residents and their families have previously struggled to access justice due to court and tribunal expenses.
“Until now, the retirement village sector has avoided proper scrutiny of its contracts, and it’s about time someone stood up for the rights of residents,” Mr Brody said.
Aveo shares closed down 7c, or 2.8 per cent, at $2.47.