The European Parliament is taking the first steps towards government oversight of third party litigation funding. On June 28, Member of the European Parliament Axel Voss introduced a legislative own-initiative report in the Legal Affairs (JURI) Committee on responsible private funding of litigation, also known as TPLF.
There is a Chinese Proverb that says, “never do anything that you want to remain a secret.” Now, thanks to a new rule amendment adopted by the U.S. District Court for the District of New Jersey, this proverb also applies to litigation funders in federal court in the Garden State. New Jersey’s decision is a significant victory in the fight to bring transparency to a multibillion industry that operates in the shadows.
The Australian Federal Treasurer and Attorney General have announced a government consultation—which allows stakeholders to submit comments to the government—on third party litigation funding and class actions to address the low and disproportionate returns for class action claimants.
For the first time ever, the value of court cases and capital held by the top UK litigation funders has reached £2 billion, reports City AM. The litigation funding market in the UK has quadrupled since 2015. This data is based on research by British law firm RPC.
Hedge funds and other speculators are eying the EU market hungrily as it loosens rules for lawsuits brought on behalf of thousands or even millions of people, says Institute for Legal Reform Senior Vice President Scévole de Cazotte in the latest issue of AmCham Croatia’s magazine.
The Australian Parliamentary Joint Committee on Corporations and Financial Services released a report this week calling for more stringent oversight of the country’s “highly unique” litigation funding industry. The report is a watershed moment for civil justice in Australia, the birthplace of third party litigation funding (TPLF), and for the litigation funding industry in general, as the use of TPLF is increasing worldwide.
Australian Treasurer Josh Frydenberg is set to announce new regulations and rules for third party litigation funding, according to the Australian Financial Review. Litigation funders will be classified under the country’s Corporations Act, and the government will require all funders to hold an Australian Financial Services Licence in order to operate.
A Liberal MP told The Australian that litigation funders have descended on the country like “a plague of locusts” to capitalize on the economic turmoil caused by the COVID-19 pandemic.
Plaintiffs’ lawyers and litigation funders, are working to convince class members in Germany to opt out of a settlement with Volkswagen and file their own claims individually, according to the Financial Times. A group of American and British lawyers, along with their own litigation funder, are trying to convince members of the original class against Volkswagen to opt-out of the recent settlement and pursue their own claims.
A ruling by the Amsterdam’s Court of Appeal confirms that the country has become a welcoming hub for transnational and international collective litigation. As reported by the Dutch press, the Amsterdam Court of Appeal is allowing a claim from a large group of Ivorians against Trafigura to proceed.
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