At a time when the UK should be aiming to bolster business confidence, the rapid expansion of class action cases and third-party litigation funding is opening many businesses up to claims worth billions of pounds.Set in motion by legal reforms introduced in 2015, this class action explosion has been supported by an expanding industry of third-party litigation funders (TPLF), who aim to profit from these potentially lucrative class action cases. The combination of class action expansion and the proliferation of TPLF creates a legal environment in which consumer protection cases benefit litigation funders and claimant law firms, rather than negatively affected consumers, undermining trust in the UK’s legal system for businesses and individuals alike.
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Table of Contents
- Sam Bidwell is the Director of the Next Generation Centre. 2
- The views expressed in this report are those of the authors and do not necessarily reflect any views held by the publisher or copyright owner. They are published as a contribution to public debate. 2
- Copyright Adam Smith Research Trust 2024. Some rights reserved. 2
- Published in the UK by ASI Research Ltd. 2
- 23 Great Smith Street London SW1P 3DJ 02072224995 infoadamsmith.org 2
- Executive Summary 3
- Introduction 4
- The rise of class action 6
- There is no exclusionary rule of real progress real significance or otherwise. 7
- Group litigation orders GLOs 7
- Collective proceedings 7
- The surge in class action cases in the UK 10
- The Changing Face of UK class actions 14
- The consumer benefits of class actions theory vs reality 19
- The future of UK class actions 21
- The role of third-party litigation funding 23
- Lessons from other jurisdictions 28
- Effect of the class action boom on UK plc 36
- What is to be done 39
- Consistency of regulatory oversight for litigation funders 39
- Highlighting weaknesses in foreign-backed TPLF 40
- Ensuring that competition law is fit for purpose 41
- Promoting alternative means to improve access to justice 42
