International Comparative Legal Guide to: Class and Group Actions 2025

Each year we
comment on the growth of class and collective action litigation, and this year
is no exception. The global growth of class and collective action litigation
shows little sign of slowing, and there are no signs that group litigation
activity will not continue its inexorable rise.



Collective actions
are now seen as part of the business landscape in the United Kingdom and,
increasingly, in Europe. While interest in collective actions was historically
transactional (typically following major events, such as Dieselgate), or
confined to certain sectors (such as product liability, particularly in the
medical context), participation in collective actions has increased markedly.
There is also much greater press and media interest and coverage of the
actions, and the events that have given rise to them.



This change in
perception is attributable to various factors, including a rise in claims of
specific types (such as actions following high-profile data privacy breaches),
and increased media attention in respect of other claims (such as high-profile
competi tion actions against water companies and gaming console manufacturers).
Public concern about environmental issues (and a perception of governments
failing to do enough to tackle climate change) has also generated increased
interest in environ mental class actions.



A key driver of
the expansion in activity over recent years has been attempts by claimant
groups (supported by increasingly experienced law firms, litigation funders and
other service providers) to test the boundaries of the procedural routes by
which collective actions can be pursued. Similar developments have occurred in
the last 12 months. From a procedural perspective, key judgments have been
issued that are likely to shape the future of the collective actions landscape,
providing 'blueprints' that offer guidance to key market participants
(including law firms, funders and prospective claimants) on the likely demands
of pursuing collective actions.



One particular
area to watch in the United Kingdom - where available mechanisms for so-called
'opt-out' claims are comparatively restricted - is representative actions. The
Courts are regularly being asked to consider whether they are prepared to show
flexibility in their interpretation of the procedural rules allowing for
representa tive actions to assist collective actions to proceed. Some cases
currently proceeding through the Courts are expected to shine an interesting
light on this important area.



Third-party
litigation funding continues to underpin (and often drive) the rise in
collective actions. Funders are increasingly receiving returns from collective
action proceedings, and are increasing their investments in various types of
cases, which include competition, securities litigation, labour and employment,
environmental and data privacy. Cases in all of these areas are now assessed
against a background of increased knowledge about the legal and procedural
issues which determine their likely success.



All of these areas merit close scrutiny and monitoring. Other
areas showing growth in the market are collective actions following the
fallouts from recent geopolitical events, such as COVID-19 and the invasion of
Ukraine, and claims directly or indi rectly arising from 'greenwashing' and
ESG. The much-developed marketplace is increasingly well-poised for future
geopolitical and other events and the current trajectory seems likely, if not
certain, to continue.