Class Actions Around the Globe

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.


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All Results for Class Actions Around the Globe

  1. Pending EU Collective Action Directive Could Ignite TPLF Abuses in Europe

    October 28, 2019 | Blogs

    Third party litigation funding (TPLF) has turned into an estimated $100 billion industry, affecting civil justice systems in the U.S. and around the world. This questionable business practice of letting outsiders invest in lawsuits is rapidly growing in Europe, just as the EU is about to pass the first EU-wide collective redress (class action) legislation.... Read More

  2. Analysis of TPLF Funding in European Collective Redress

    October 15, 2019 | Research

    Third party litigation funding-the practice of hedge funds investing in litigation in exchange for a cut of the proceeds-has begun to take root in Europe. Unfortunately, an almost total lack of transparency and regulation means that even as its supporters promise greater "access to justice," TPLF threatens the integrity of European civil justice systems. This ILR research paper details the state of play for TPLF in Europe and around the world, and urges EU legislators to take up a number of specific reforms to protect consumers and businesses.... Read More

  3. In the News Today - September 25, 2019

    September 25, 2019 | News

    European Court of Justice Limits Scope of Data Laws... Read More

  4. Recent UK Developments Add to "Global Rise of Collective Actions"

    August 19, 2019 | News

    Developments in the UK litigation landscape are a reflection of the "global rise of collective actions," Kevin LaCroix said in D&O Diary.... Read More

  5. Earlier Decision "Completely Unsuitable" For UK Class Action System, Mastercard Says

    July 29, 2019 | News

    A Mastercard spokesman told The Telegraph that the huge class action lawsuit revived by the UK Court of Appeal "is completely unsuitable to be brought under the collective actions regime."... Read More

  6. UK Supreme Court To Hear Massive Mastercard Case

    July 25, 2019 | News

    The UK Supreme Court announced today that it will hear Mastercard's appeal of a £14 billion ($17.5 billion) class action lawsuit that has huge implications for the country's legal system.... Read More

  7. 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

  8. 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

  9. 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

  10. 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