Phi Finney McDonald to pursue GetSwift

Law firm Phi Finney McDonald will take on the sole class action against software developer GetSwift after a Federal Court justice found it had a more "preferable" funding proposal than two competing actions.

The trio of class actions were seeking damages for shareholders following allegations GetSwift engaged in misleading and deceptive conduct by failing to inform the market of the loss of materially important contracts.

Earlier this year shares in GetSwift, which was founded by former AFL player Joel Macdonald and offers software to help businesses manage logistics, fell 82.5 per cent to 51 cents - wiping $253 million from its market value.

Competing class actions launched by Squire Patton Boggs and Corrs Chambers Westgarth were stayed on Wednesday - meaning they will not proceed in court - with Federal Court Justice Michael Lee concluding Phi Finney McDonald had a "clearly preferable" funding proposal.

"(It) is the clearly preferable of the three funding proposals as a matter of structure, having the advantage of producing a more direct correlation between the amount ventured and the likely return," Justice Lee said in his judgement.

Given there are no significant differences among the three proposed class actions, there is no reason why the claims against GetSwift cannot be supported in one proceeding, he said.

Justice Lee also said one class action should progress as the case is likely to settle and multiple proceedings would reduce the amount shareholders may receive.

He noted there was no difference in the experience or competence of the legal practitioners concerned, and said each team of legal representatives would be "more than competent" in the proceeding and would take "adequate steps" to devote sufficient resources to the task.

Phi Finney McDonald has been ordered to serve a statement of claim by May 28, while GetSwift will prepare a defence by June 6.