NEW YORK: The US Chamber of Commerce is lobbying to prevent US-style class actions being brought in the UK courts as litigation funding expands to promote consumer rights.
Campaigning under the title Justice not Profit, the organisation is claiming that the Consumer Rights Act 2015 will open the door to spurious legal claims that undermine the profitability of business.
The UK litigation-funding industry has expanded rapidly in the past few years. It is estimated to have amassed more than £1bn in capital to invest in court cases. Firms take on the costs and risks of cases and in return receive a proportion of compensation awarded in the final judgment.
Over the same period, legal aid for claimants in civil cases has been repeatedly cut. Litigation funders, who operate like hedge funds, mainly target very high-value cases and have now begun repositioning themselves to take on mass lawsuits.
