The federal government has signed an 11th-hour settlement in the class-action lawsuit over the unlawful Robodebt scheme which will see $112 million in compensation flow through to about 400,000 victims.

Total costs of settling the lawsuit will reach $1.2 billion, the largest bill for a class action lawsuit in Australian legal history.

Consumer Action Law Centre CEO Gerard Brody says he hopes the government “has learned its lesson from this catastrophe,”

“Using algorithms to raise debts without looking at the person’s situation is dangerous,” Mr Brody told Brooke Corte.

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