more than two years ago when issues with its network were brought to light by customers and the media.
The action was threatened over dropped calls, bad reception and poor data performance,
but stalled after the firm failed to secure funding to back it.
Mr Ivantsoff said the action would cover people who were Vodafone customers in 2010 and 2011.
"They will need to re-enter their details, provide us a bit
of information about how much money they were spending each month with
Vodafone and that's pretty much it," Mr Ivantsoff said.
Vodafone reported that it lost 443,000 customers in the 2012
calendar year, with customers deserting the telco in droves since
network issues were first brought to light
On its website, Litigation Fund LCM states it "prefers" to
undertake projects in which the relevant legal claim is for at least
$2.5 million. Gordon Grieve, Piper Alderman's chairman, could not
quantify exactly how large the damages claim against Vodafone would be,
but estimated it would be "in the order of tens of millions" of dollars.
Mr Ivantsoff said the firm has agreed to give Litigation Fund
LCM 15 per cent of the total amount of damages if the matter settles
successfully before the end of May or 33 per cent thereafter.
Vodafone would have to pay at least $50 million in
compensation for 23,000 claimants to recover the cost of a two-year
contract. If Vodafone paid this, LCM would take $18.15 million, plus
legal costs, leaving about $30 million to be shared among 23,000 people.
Vodafone said in a statement that Piper Alderman had not
contacted it about the action, but it was aware the firm the firm was
set to announce a lawsuit. The telco said the law firm was known for
promoting class actions, but had not "sought to discuss" claims of any
customers with it.
Asked why it took more than two years to put together a class
action, Mr Ivantsoff said that it took "a lot of work" to investigate
the nature of the claims against Vodafone.
"We envisage being able to approach Vodafone sooner rather
than later with the nature of the case, open some discussions and if
they are unsuccessful then our objective is to file proceedings within
three months," he said.
Elise Davidson, a spokeswoman for the Australian
Communications Consumer Action Network, the peak body that represents
consumers on communications issues,
said that instead of taking part in the class action customers unsatisfied with Vodafone's network should contact the
Telecommunications Industry Ombudsman, a free service set up to resolve complaints.
"This class action is going to take a long time to play out
and there are no guarantees for consumers that they will receive
compensation if it goes to court – our fears are that this will turn
into a lawyer’s picnic," Ms Davidson said.
Clarification: This story originally
stated Piper Alderman was after "at least" $2.5 million in damages. Mr
Ivantsoff originally said the firm was after that amount but this was
later clarified as being "tens of millions" of dollars by Piper Alderman
chairman Gordon Grieve.
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