Class action risk has increased significantly over the past decade, with a rising number of claims filed and more law firms and funders becoming involved, a report by lawyers Allens says.

Traditional “plaintiff” law firms Maurice Blackburn and Slater & Gordon have been active in the area, but the report says a number of other firms have started pursuing claims.

“This ‘new entrant’ risk has been a defining feature of the class actions landscape in recent years and, contrary to common perception, has had a materially greater impact on class action risk than third-party funding.”

However, the number of companies facing new class action activity in recent years has fallen, with overall data affected by multiple claims in connection to the same or related conduct.

Shareholder class actions against listed companies have spiked in the past 18 months, with longer-term trends suggesting banks and financial services companies are the most frequent targets.

“It remains to be seen whether filings in this sector are sustained in the years to come, particularly as the limitation periods in respect of [global financial crisis]-related losses expire,” the Allens report says.

A “renaissance” of product liability claims has continued, initially driven by medical devices and pharmaceutical claims, and followed more recently by claims in the automotive industry.

The number of natural disaster class actions related to flood and fire also continues to grow.

“This is most likely to be of concern to government, electricity companies and the operators of public infrastructure,” the report says. “It is, of course, also of broader interest to the insurance sector.”

The vast majority of class actions are settled, but almost one-third are dismissed or otherwise discontinued, according to Allens.