CMS clashes with claimant lawyers and funders over ‘remarkable rise’ in European class actions

Claimant law firms and litigation funders have hit back at claims by CMS that they are helping to fuel a ‘remarkable’ rise in the number of European class actions, with Leslie Perrin of Calunius Capital arguing that “the assertion by CMS to their clients that class action risk is, increasingly, a board-level issue must be a good thing for business and society as it ensures greater accountability and adherence to the rule of law.” More from the Global Legal Post.

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Litigation funding “explosion” driving class actions across Europe

The “explosive growth” of litigation funding is behind an increase in class actions across Europe over the past two years, a report by the law firm CMS has argued. Kenny Henderson of CMS warns though that “as litigation funding expands, and in particular into class actions where the class members are often private individuals without independent legal advice, we are expecting increasing calls for formal statutory regulation.”

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CMS European Class Actions Report 2022

CMS has published its European Class Actions Report 2022. It notes that 2021 saw a record high for the number of collective proceeding order (CPO) applications filed in the Competition Appeal Tribunal (CAT) in the UK. 85% were stand-alone claims – a marked change from 2016 to 2020 when the majority of claims filed were follow-on claims. Stand-alone claims are often seen as attractive for claimant law firms and funders in that regulatory scrutiny attracts attention from various potential claimants.

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5 minutes with… Mick Smith

Mick Smith of Burford Capital shares, among other things, what drove him to develop his own litigation finance firm (Calunius Capital) in 2006 and why he subsequently joined Burford in January 2022.

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