Australia's Largest Class Action Settlement Over Robodebt Programme Unfolds
Australia's illegal Robodebt welfare recovery scheme led to a $308.66 million compensation agreement, potentially marking the nation’s largest class action settlement. The program, criticized for causing financial and emotional harm, was based on faulty debt assessments, highlighting issues in public administration.
- Country:
- Australia
The Australian government has agreed to compensate victims of the illegal Robodebt welfare recovery scheme with an additional A$475 million, or $308.66 million, marking a significant legal development. If approved by the courts, this would represent the largest class action payout in Australian history.
The Robodebt program, operational between 2016 and 2019, mistakenly pursued welfare recipients for incorrect debts, resulting in severe financial distresses and several suicides, as uncovered by a government royal commission inquiry. The settlement brings government expenditure on this scandal to an estimated A$2.4 billion.
This resolution was propelled by a class action spearheaded by affected individuals and Gordon Legal since 2019, aiming to rectify the unjust debt claims enforced by faulty algorithms. Attorney-General Michelle Rowland emphasized the imperative for justice, as this cloud of controversy finally nears closure.
(With inputs from agencies.)
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- Robodebt
- Australia
- compensation
- settlement
- welfare
- debt
- recovery
- government
- legal
- class action
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