Thorn Group continues to defend class action

Process could take years.

The Federal Court of Australia will hold an interlocutory hearing on 9 August 2018 to resolve outstanding issues between Thorn Australia and law firm, Maurice Blackburn in respect to Thorn’s class action for misleading consumers.

The matter was also tentatively fixed for hearing for two weeks commencing on 17 June 2019.

In a statement to the Australian Securities Exchange (ASX), Thorn Group said, “While Thorn Australia will continue to defend the claim in the ordinary course of the class action process, that process could take a significant length of time, perhaps years, to run its course, is a management distraction and exposes the group to significant legal and advisory fees.

“As with all major litigation, the company is unable to make any statements or predictions as to the outcomes that may eventuate.”

Maurice Blackburn launched a class action in the Federal Court of Australia on 29 March 2017 seeking compensation for over 200,000 consumers who entered into ‘Rent Try $1 Buy’ leases with Radio Rentals between 28 March 2011 and 29 March 2017.

At the time, the law firm said that if the class action was successful at trial or a settlement with Radio Rentals was reached, eligible group members would be paid compensation.

The matter involves Radio Rentals stores owned and operated by the Thorn Group in states other than South Australia. The South Australian Radio Rentals brand is not associated in any way. In South Australia, Thorn Group stores trade as Rentlo Reinvented.

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