EU Biz Groups Call For Rules For 3rd Party Litigation Funding

By Irene Madongo (June 23, 2022, 2:58 PM BST) — Leading European business trade groups have called on the European Union to develop “appropriate” rules to prevent risks caused by third-party funded lawsuits.

In a joint statement published Wednesday, 13 organizations raised concerns about third-party litigation funding, where private financiers such as investment funds have confidential deals with lawyers to fund lawsuits in exchange for a cut of any settlement or award.

Introducing a “profit-motivated” third party in the traditional attorney-client relationship raises ethical issues, according to the organizations, which include industry bodies Insurance Europe and the European Banking Federation, as well as the lobbying group Business Europe.

A concern is…

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