UK Collective Actions: Stricter Certification And What It Means For Funders

Summary

The president of the Competition Appeal Tribunal (CAT) has signalled a more rigorous approach to scrutinising opt-out collective actions at the certification stage, with particular attention to whether the financial benefits of such claims flow to the claimant class or primarily to their lawyers and funders. Coming at a time when the UK Law Commission is consulting on expanding the scope of the opt-out regime, this development warrants careful consideration by all those with interests in the UK litigation funding market.

Background

The UK opt-out collective actions regime, which allows competition-based consumer claims to proceed on behalf of millions of individuals who have not actively chosen to participate, has operated since 2015. Under this model, claimants are automatically included unless they take steps to remove themselves.