In a recent ruling by the Supreme Court of the United Kingdom, restraints were placed on investors known for speculation on the outcome of competition class actions. This decision could be a significant blow to those who seek to profit through the manipulation of the court system, however, this may be a temporary bind only.
The Supreme Court’s judgement revolved around two collective action lawsuits that were brought against truck manufacturers over suspected anti-competitive conduct. The noteworthy aspect here is that the lawsuits weren’t directly financed by claimants or solicitors, but by investment firms – a practice known as third-party litigation funding (TPLF).
This practice, often justified by litigation funders as promoting “access to justice”, has repeatedly been demonstrated as flawed. Such critique comes from multiple sources; among them, a former UK MP whose analysis strengthens the recent decision by the Supreme Court.
For further reading, please refer to the original article, provided by Law.com international edition: “The Supreme Court Got it Right by Reining in Litigation Speculators”.