Class Actions Around the Globe

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Studies over the years have consistently shown that the United States has one of the most expensive tort systems in the world (costing $429 billion in 2017). The U.S. business litigation environment is well-known to be particularly litigious, costly and ineffective. Yet, despite these obvious flaws, countries around the world are increasingly “importing” the most problematic features of the U.S. litigation system. Read More...

A recent ILR study shows that most EU Member States, including the UK, are rapidly adopting collective redress mechanisms without setting in place essential safeguards to prevent litigation abuse. To make matters worse, traditional European litigation safeguards, like the “loser-pays” rule, are eroding.

On top of these country-specific developments, the European Commission has also issued a proposal for a directive on collective actions that would allow consumers to bring American-style class action lawsuits in the EU. The proposed system goes further than the broadest form of collective action currently in existence in the EU.

As these trends develop around the world, those looking to take advantage of the courts in order to make a profit are also expanding globally. Third party litigation funders, which invest in claims for a percentage of the awards, are growing vigorously in many countries, including Australia, Canada, and the UK. The Financial Times reported that £70 billion (or approximately $100 billion) was a reasonable estimate of the amount of litigation funding available to funders and firms worldwide.

To mitigate these risks, ILR engages around the world to caution foreign policymakers and stakeholders against adopting U.S.-style class actions and advocate for safeguards and alternative methods of dispute resolution. ILR also commissions timely and substantive research that is often cited by foreign policymakers, stakeholders, and the media.

Suggested Resources

Research

All Results for Class Actions Around the Globe

  1. In the News Today - July 22, 2019

    July 22, 2019 | News

    Australian Corporation Argues Funding Deal Gives Too Much Control To Funders; California Assemblyman Says Decision To Take Labels Off Coffee Was "Right"... Read More

  2. In the News Today - July 17, 2019

    July 17, 2019 | News

    EU Data Privacy Fines Are Getting Steep. Will This Be the New Normal?... Read More

  3. In the News Today - July 10, 2019

    July 10, 2019 | News

    European Court of Justice Warned That Lawsuit's Effect On Trade "Would Be Immense"... Read More

  4. In the News Today - July 8, 2019

    July 08, 2019 | News

    Louisiana Tort Laws "Encourage Claims And Litigation," Insurer Association CEO; For Funders And Plaintiffs' Lawyers, It's "Game On" In Australia... Read More

  5. ILR President: "Only the UK Supreme Court Can Now Prevent a US-style Litigation Monster"

    July 03, 2019 | News

    In a Law Society Gazette commentary piece, Lisa A. Rickard, the president of the U.S. Chamber Institute for Legal Reform, said a case potentially before the UK Supreme Court is the only thing separating the UK legal system from a "US-style litigation monster."... Read More

  6. In The News Today - July 2, 2019

    July 02, 2019 | Blogs

    GDPR "Holding European Businesses Back," Data Think Tank Analyst Says; TPLF Driving Growth of Australian Class Actions... Read More

  7. In The News Today - June 25, 2019

    June 25, 2019 | News

    U.S. Funder Backs £14bn Claim Against Mastercard... Read More

  8. EU Collective Redress Proposal Provides "Short Leap" To Expanded System

    June 18, 2019 | News

    D&O Diary's Kevin LaCroix said introducing a collective action mechanism, no matter how narrow, would provide "a relatively short leap" to a broad system "despite near-universal disdain for the U.S. style class-actions... Read More

  9. In the News Today - June 5, 2019

    June 05, 2019 | News

    Cost of D&O Insurance In Australia Is Up 122%. Is Securities Litigation To Blame?... Read More

  10. Litigation Funding "Damaging" Australian Economy, Former Law Council President Says

    May 30, 2019 | News

    The former president of the Law Council of Australia, which represents the country's legal profession, said in an op-ed that third party litigation funding must be addressed because it is "damaging" the economy and "taking excessive commissions and charges from those claimants who genuinely deserve compensation."... Read More