U.K. adopting U.S. style of class actions

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October 27, 2015

UK flagIn the U.K., the Consumer Rights Act of 2015 goes into effect on October 1st. The scope of collective actions referred to as class actions in the U.S. currently involves an opt-in process to become a member of the class. With the Consumer Rights Act, collective actions will become very similar to the U.S. style of class action. Like in the U.S., members will not need to opt-in to the class and will have the option to opt-out of the class to proceed with direct litigation. This will be the first time the U.K. has allowed a U.S. style “opt-out” mechanism. The opt-out procedures only apply to class members located in the U.K. Members who are not located in the U.K. must opt-in to be included in the class.

As of now, these laws only apply to consumer actions and is unclear if they will be applied to securities laws as well. In the past, the consistency of filings for class-action lawsuits in the U.S. system has been scrutinized. Even though there has been talks about avoiding the U.S. style, other countries have reformed their laws to become more aligned with the U.S. system. Depending on the effect this has on collective actions and if this will affect securities laws, it will be interesting to see if an upswing of filings occurs.

Read more about the U.K. adopting the U.S. style class action here.

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Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability, and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and do not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.