The law firm and litigation funder are involved in another class action with online retailer SurfStitch, alleging a breach of continuous disclosure rules and misleading and deceptive conduct.Īdd-on insurance was flagged as a problem in 2011, when the British mis-selling scandal was at its height, prompting ASIC to investigate 15 financial institutions. The law firm is considering filing the case in the Supreme Court of Queensland, under the court's recently-introduced new class action rules. Quinn Emanuel partner Damian Scattini said he expected to file the class action next month. It is the trading name of Davantage Group, a subsidiary of Australia's specialist insurance, warranty and finance company Presidian, which has a distribution network of 2500 used car dealers, 82 brokers and 14 retail branches via its Money Now business. McMillan Shakespeare bought NWC in 2015 as part of a diversification strategy.

It said: 'As far as we can tell, warranty providers can avoid paying many, if not most claims, either by relying on their discretion or on one of the exclusions.' The report, 'Donating your money to a Warranty Company', featured three companies, including McMillan Shakespeare subsidiary NWC. In the past few years ASIC has launched three separate investigations into add-on insurance after finding many of the products have claims ratios as little as 9¢ in the dollar, which renders the products virtually useless.Įxtended warranty insurance sold through car dealers prompted a separate investigation by the Consumer Action Law Centre (CALC), which concluded that most of the products being sold to customers were 'rubbish'. The class action comes as the corporate regulator, the Australian Securities and Investments Commission, is ramping up its focus on add-on insurance, particularly products sold through car dealerships.

The class action, which will also allege illusory consideration, will send chills through McMillan Shakespeare, along with the $86 billion car dealership industry which makes a fortune collecting commissions selling car warranty products.Ĭar leasing giant McMillan Shakespeare is being accused of unfair and unconscionable conduct relating to its extended car warranty business NWC. The Australian Financial Review can reveal that the class action will be funded by global litigation funder Vannin Capital and law firm Quinn Emanuel Urquhart & Sullivan will file the action next month. Car leasing giant McMillan Shakespeare is to be hit with an $80 million class action alleging unfair and unconscionable conduct and misleading and deceptive conduct in its extended car warranty business NWC.

Shakespeer warranty