Padronus backs three German streaming price claims and caps its fee at 9.9%

Austrian litigation funder Padronus is financing three collective redress actions against Netflix, Apple TV+ and WOW. It will take 9.9% of any recovery. Vienna-based consumer group VSV announced the claims on September 15. VSV alleges the providers raised subscription prices without proper customer consent.

The claims

VSV alleges the providers relied on price adjustment clauses and did not seek separate consent for each increase. It argues affected consumers can recover the overpayments. According to Padronus, Apple TV+ doubled its monthly price from €4.99 to €9.99. Padronus says Netflix raised prices several times without consent.

VSV expects recoveries of €200 to €700 per contract, depending on provider, plan and duration. Padronus chief executive Richard Eibl said that if one million customers joined, a win could cost the providers hundreds of millions of euros.

The funding terms

Padronus carries the cost risk. It receives 9.9% of any proceeds if the claims succeed. German law makes a funded collective action inadmissible if the funder is promised more than 10% of what the defendant must pay.

Consumers bear no cost risk. VSV says it is a non-profit and earns nothing from the claims. It is directing claimants to streaming-klage.de.

What it means for funders

Germany's collective redress regime permits third-party financing subject to specific conditions. One is the rule that makes an action inadmissible where the funder's economic share exceeds 10% of the defendant's payment. The claimant organization must also disclose the source of funding and its agreement with the funder to the court.