Lloyd’s of London warns that class actions, forum shopping and third-party funding of litigation are on the increase in Europe and the United States. The warning comes in its latest report, “Litigation and Business: Transatlantic Trends.”
As discussed in Business Insurance News, the Lloyd’s report claims that the risk to business of mass litigation is “looming” and likely to increase in Europe, as the opportunities for class actions grow. Lloyd’s noted that Portugal, the Netherlands, Spain and Sweden already have class action mechanisms in place, while Germany has restricted class action litigation. Lloyd’s further notes that the risk for European companies of being sued in the United States is high, but that there may be benefits to resolving large claims in the United States in order to pre-empt actions elsewhere.