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 article discusses how the EU’s new collective actions Directive will create a lucrative playground for third party litigation funders (TPLF). TPLF allows private financiers to sign secret deals with claimants’ lawyers to fund lawsuits in exchange for a cut of any settlement or award. Without mandatory disclosure requirements and proper safeguards, TPLF could cause great harm to consumers and businesses across Europe. You can read more here.
The United Nations Commission on International Trade Law recently proposed provisions to limit or eliminate third-party litigation funding in investor-state arbitration claims, according to an article by Law360.