Increase in Collective Lawsuits in the UK and Europe: Potential Threats and Benefits
In a recent article published by Risk & Compliance, Gump partners Richard Hornshaw and Jenny Arlington offer insights into the potential business opportunities that may arise from the increase in class actions in the UK and Europe.
The judiciary and legislature in both the UK and certain European countries are offering significant support for the development of class actions, with the EU's Collective Redress Directive set to be adopted by each member state, having a significant impact. The implementation of this directive is expected to further increase the risk of aggregate litigation for organisations in the region.
The article identifies four factors driving the increase in class actions in the UK and Europe: the maturation of the litigation funding market, the economics of class action claims influenced by the rise of 'opt out' regimes in certain jurisdictions, the increased global attention on legal issues that are suitable for collective redress, and the growing awareness of class actions as a means of seeking redress for wrongs.
The authors advise organisations to expedite any legal and compliance plans and programs already in motion due to the increased risk of aggregate litigation. They highlight recent significant claims in the UK, such as the Merricks v Mastercard claim and the Lloyd v Google claim, as examples of the potential consequences of failing to address these risks.
However, the article does not only focus on the risks for corporations. It also discusses business opportunities for certain market participants, such as litigation funders, law firms, and alternative dispute resolution providers. The authors note that organisations that improve their legal positions by enhancing compliance programs, increasing transparency, and adopting alternative dispute resolution mechanisms have been able to mitigate these risks and even turn them into opportunities.
The article, titled "The Rise of Class Actions in the UK and Continental Europe: Risks and Opportunities," is a must-read for any organisation operating in the UK and Europe that wants to understand the implications of the rise in class actions for their business. The authors, experts in their field, provide a comprehensive analysis of the risks and compliance challenges for corporations, as well as the potential business opportunities for certain market participants. The article is published on the website of Risk & Compliance, a publication, and was authored by Gump partner Richard Hornshaw and counsel Jenny Arlington.
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