Davis v Wilson (Costs) [2025] FCA666

The Federal Court of Australia has ordered LCM jointly and severally liable for the costs of a failed class action against EY and Frank Wilson—the founder, CEO and managing director of insolvent sandalwood producer Quintis Australia.

While the Court previously found that Mr Wilson had made misleading statements to the market, and that EY’s unqualified audit opinion misled investors, it held that the applicants failed to prove causation and suffered no compensable loss. In imposing joint and several liability for costs on LCM, the Court noted that LCM had not only funded the litigation for commercial benefit but had actively controlled the prosecution of the claims. As a result, the Court held that it was fair and appropriate for LCM to share responsibility for the costs, irrespective of whether the other applicants were independently capable of satisfying any costs orders.