Internationalisation and tech drive growth in class actions
Class actions are on the rise. The 2023 CMS annual class actions report has analysed class action claims filed between 2016-2022 across 29 jurisdictions to identify the key trends in class actions internationally.
The data shows some stark trends.
Class action sizes are increasing
In the UK for example, 2022 saw 15 new class actions filed on behalf of 169 million people in aggregate.
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Increased litigation funding is making a big impact
Increased litigation funding is making a big impact
LegalTech is enabling more international class actions
The Representative Actions Directive will increase the number of class actions
More class actions are being filed in traditionally low risk countries
Financial products and competition generate most class actions
This is a year-on-year increase of over 100m people in UK competition class actions.
More litigation funders are entering the marketplace to better fund claimants.
2021 saw an 11% year on year increase in balance sheet value of the top 15.
LegalTech solutions are enabling claimant firms to better manage the diverse nature of claimant groups, co-ordinate cross-jurisdictional elements and effectively communicate complex legal concepts to these groups.
This provides additional mechanisms that will lead to a further increase in the number of class actions. Some countries have taken the EU Directive a stage further and implemented opt-out systems, meaning more people are automatically included in a collective action.
The UK, the Netherlands, Germany and Portugal experience the most class comprising 76% of all European class actions between them. However, there is significant growth in other less traditional jurisdictions such as France, Austria and Slovenia.
In 2022, 31% of class actions were borne out of financial products / shareholder / securities issues.
Competition issues were a close second with 26% of all class actions filed.
LegalTech is enabling more international class actions
The Representative Actions Directive will increase the number of class actions
More class actions are being filed in traditionally low risk countries
Financial products and competition generate most class actions
In the UK for example, 2022 saw 15 new class actions filed on behalf of 169 million people in aggregate.
More litigation funders are entering the marketplace to better fund claimants.
2021 saw an 11% year on year increase in balance sheet value of the top 15.
LegalTech solutions are enabling claimant firms to better manage the diverse nature of claimant groups, co-ordinate cross-jurisdictional elements and effectively communicate complex legal concepts to these groups.
This provides additional mechanisms that will lead to a further increase in the number of class actions. Some countries have taken the EU Directive a stage further and implemented opt-out systems, meaning more people are automatically included in a collective action.
The UK, the Netherlands, Germany and Portugal experience the most class comprising 76% of all European class actions between them. However, there is significant growth in other less traditional jurisdictions such as France, Austria and Slovenia.
In 2022, 31% of class actions were borne out of financial products / shareholder / securities issues.
Competition issues were a close second with 26% of all class actions filed.