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.
Oral arguments began this week in the massive £14 billion collective action lawsuit over MasterCard’s interchange fees, MLex reports. The controversial case was initially rejected after a specialized court, the Competition Appeals Tribunal (CAT), denied certification because it said the claimant would be unable to prove that the fees were passed on to consumers, among several other reasons.