As “digital disruption” changes the way we consume information, especially news, a top lawyer has called for new and novel ways to contact shareholders and consumer of products who might have a windfall from a class action.

Barrister Michael Lee, SC, who’s run a host of major class actions on behalf of shareholders and consumers, said the traditional way of notifying investors about a class action settlement by putting an advertisement in the newspaper and a notice up on a law firm’s website would not reach as many people as previously.

“[The class action regime] has to be open to new ways in which that should be done – whether that involves the use of the shareholder register, whether that involves social media, whether that includes new novel ways of communicating with a broad number of people,” Mr Lee said.

Mr Lee said these approaches should be used in conjunction with press advertising.

He said that in a recent case, the class action brought against collapsed financial services giant Allco, the court took the rare step in allowing the class action lawyers to obtain a copy of the shareholder registry and notify customers that way.

In the Allco case a $30 million settlement had been reached to pay shareholders who signed up to the class action

A further $10 million was set aside to settle claims of any unregistered members, returnable to Allco (which is in liquidation) if no one took up the offer.

The reason the court took this approach is because Australia’s current class action system is founded on an “opt out” regime rather than an “opt in” regime, meaning class action lawyers have to find a way of locating affected people and asking whether they want to opt in or out.

Mr Lee said the use of the shareholder register provided access to justice for Allco shareholders who might not have read the newspaper on a particular day.

“What happened was that the notices went out using the register on December 22 and by January 6 there were sufficient responses to come in that all the money was exhausted,” Mr Lee said.

“I do think there is a real public policy issue about having unfettered access to company registers for litigation funders of all persuasions to send out promotional information – I don’t think that’s why registers exist,” Mr Lee said.

“But I do think it’s a little different when the court is giving opt-out notices and giving people notification of settlement and things like that,” he added.