Webb v GetSwift Limited (No 7)

Webb v GetSwift Limited (No 7) concerns a representative proceeding brought on behalf of shareholders of GetSwift Limited, alleging misleading and deceptive conduct by the company and its former CEO, Mr Macdonald. The Federal Court was tasked with determining whether the proposed settlement, heavily discounted due to GetSwift's insolvency, was fair and reasonable for the group members. The court examined whether the settlement adequately compensated the group members and balanced their interests.

The primary legal issue was whether the proposed settlement was fair and reasonable for the group members, considering the respondents' insolvency and the minimal chance of recovering more than the $1 million currently held on trust. The court had to balance the interests of the group members and decide if the settlement was in their best interests, including as between themselves.

In approving the settlement, the court noted that the chances of group members recovering more than the $1 million currently held on trust were minimal. Given that only a fraction of the legal costs and litigation funding charges would be paid out of the settlement, the court concluded that the proposed settlement was fair and reasonable. The court was satisfied that the settlement was in the best interests of the group members, including as between themselves. The court's decision was based on the substantial discount due to GetSwift's insolvency and the negligible prospects of obtaining greater compensation.

The court approved the settlement and made orders for its implementation, including the distribution of funds for legal costs and expenses, and dismissed the proceeding with no order as to costs. The orders also included provisions for confidentiality and the appointment of an administrator for the settlement distribution scheme.