Businesses across Victoria that suffered financial losses during the state’s strict Covid-19 lockdowns are set to receive $125 million in compensation following a legal settlement with the government.
The payout comes after a class action lawsuit filed on behalf of retailers who argued the lockdown restrictions caused significant economic damage.
The case was heard in the Supreme Court of Victoria, where lawyers representing affected businesses said a settlement had been reached with the state government.
Businesses argued lockdown caused economic loss
Retailers involved in the lawsuit claimed the government should compensate them for losses suffered during the 2020 lockdown period.
Between July and October 2020, strict public health restrictions prevented customers from visiting physical stores.
This meant many retail businesses were unable to operate normally during what became one of the longest Covid lockdown periods in the world.
The case was led by 5 Boroughs NY Pty Ltd, which acted as the lead plaintiff representing affected retailers.
$125 million settlement reached
Barrister Adam Hochroth SC, representing the class action, told the court that both sides had agreed to settle the dispute.
He confirmed the settlement amount was $125 million, covering compensation as well as legal costs and interest.
The agreement means the scheduled trial will not proceed.
However, the settlement still requires formal approval from the court before funds can be distributed.
Government stands by pandemic decisions
A spokesperson for the Victorian government said the state continues to stand by the public health decisions taken during the pandemic.
Officials said the settlement would avoid a long and costly court battle.
The government also emphasised that the lockdown measures were introduced to protect public health during the Covid crisis.
Businesses welcome the outcome
Law firm Quinn Emanuel Urquhart & Sullivan, which represented the businesses, described the settlement as the result of years of legal work.
Partner Damian Scattini said the payout recognises the hardship many businesses faced during the strict restrictions.
He noted that the months between July and October 2020 were an extraordinarily difficult period for Victorian retailers.
If approved by the court, the settlement will provide financial relief to eligible businesses affected by the lockdown measures.
