France to allow class action lawsuits

FRT Admin
Site administrator
June 3, 2013

The French have been debating the introduction of class actions for some time, and the country is now a step closer to making it a reality.  It was first discussed in 1990 before the Commission for the codification of the Consumer Code. During their tenures, former Presidents Jacques Chirac and Nicolas Sarkozy both unsuccessfully attempted to establish class action lawsuits. Now, the French government has said it will allow class action lawsuits against companies for fraud, price-fixing and other consumer violations.

france-rulingThe legislation, which was presented to the Council of Ministers earlier this month, is expected to reach Parliament in mid-June. Consumption Minister Benoit Hamon, who presented the bill to the Council, said “[w]e want a quick procedure that would allow consumers to obtain compensation down to the euro for damages they suffered.” He admitted that currently there are “some holes in the protection of consumers.”

In an attempt to avoid the abuse and excesses associated with U.S. class actions, the legislation only authorizes 16 approved consumer associations to initiate a class action. Additionally, compensation would only be able to be sought for material damages arising from a company’s legal or contractual violation. According to the proposed legislation, there would be no minimum number of plaintiffs required to bring a case and no upper limit to financial damages.

The proposed class action will use a hybrid opt-in/opt-out approach. When an authorized consumer association brings a case, the judge will decide on the merits and devise a formula for the distribution of damages. Members of the class will then have an opportunity to opt-in or opt-out of the action.

While the proposed law only applies to anti-trust and consumer claims, revisions may be made in the future to cover investor rights in securities actions.

Non-US group securities litigation continues to increase across the globe, which is why Financial Recovery Technologies established FRT Global to track and analyze international settlement recovery opportunities.

Contact FRT today to learn more about our international information and research practice.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
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.