Faegre Drinker and independent strategic communications consultancy group Kendal Global Advisory partnered to release a study on the United Kingdom’s class action regime.
The report, based on interviews with senior executives at 23 of the UK’s largest companies and polling of 2,000 adults across the country, shows that the current class action regime undermines business investment and fails to serve consumers. According to the report, two-thirds of the companies interviewed have faced at least one class action lawsuit, with litigation costs reaching into the hundreds of millions and leading to delays in product launches. Likewise, 65 percent of consumers polled said law firms should seek their permission before launching opt-out claims, despite millions of individuals being automatically enrolled without their knowledge. 79 percent of those polled said they fear hidden costs and misunderstand “no win, no fee” rules.
“We see how quickly complexity and costs escalate in collective action cases, often without material benefit to claimants,” noted London litigation partner Jeremy Andrews. “The research suggests that stronger certification standards, clearer notification requirements and greater transparency to third party funding would all help make the system more predictable for business - and more meaningful for those it is supposed to serve.”
Patrick Reilly, a partner in Faegre Drinker’s noted product liability and mass torts team, added “While the UK has not fully replicated the U.S. model, its trajectory is clear: without tighter oversight of funding, costs, and consumer outcomes, it risks importing many of the same flaws that have made U.S. class actions an expensive, often ineffective system.”
Faegre Drinker’s global coordinating counsel team guides clients worldwide through complex class actions, consumer claims and mass torts. As international litigation and regulations reshape industries, we keep clients informed of key developments and risks. We coordinate cross-border litigation and investigations to ensure consistency, efficiency and strategic insight in navigating global markets.