News & Blog

German Litigation Funders Target the Small Fish to Make the Big Bucks

Litigation funders in Germany are adapting to the growing number of international litigation funding firms setting up shop in the country, and developing their own cash streams.  

Large international funders are expanding their activities in Germany and even opening offices in the major cities, as did Deminor back in May. 

While the big, mostly non-German funders predominately finance mass claims, especially shareholder cases, a large group of smaller German funders focus on taking on individual claims with a value ranging from EUR 10K – 50K. 

These smaller funders operating outside the main German cities tend to focus on a specific type of litigation such as consumer cases or bankruptcy claims, and other low-value claims. These funders, like Armida and B&K Prozessfinanzierung, are taking the same high percentages of any judgement award or settlement, like their large competitors, but are targeting an untapped market, where the claims are smaller, but can be litigated more quickly. 


More to explore:

German Bar Association Supports Stronger EU Regulation of TPLF

he German Bar Association (BRAK) is weighing-in on the European Parliament’s draft report on responsible private funding of litigation.  The Parliament’s report, authored by German MEP Axel Voss, recommends an EU directive to sensibly regulate third party litigation funding (TPLF)

Plaintiffs’ Lawyers, Litigation Funders Swoop In On VW Settlement

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.




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