Participation Of Lawyers In Litigation Funders

In Germany, lawyers are largely prohibited from offering litigation funding and agreeing on a performance-based fee. Legal tech providers who are not lawyers, on the other hand, give claimants the opportunity to pursue their claims without a cost risk in return for a contingency fee. As a result, lawyers are seeking ways to bypass the prohibition and earn a fee for successfully obtained judgments.

Market overview

With increasing digitalisation, Germany's legal services landscape is undergoing major changes and, since the recent "dieselgate scandal" in particular, the field of collective redress actions has been in a state of flux. In recent years, an increasing number of legal tech service providers have emerged; their business model is to collectively pursue claims in mass lawsuits using various class action models (which have now been recognised by the highest courts). Litigation funding is often included in the package offered. Litigation funders cover the