The U.S. Chamber Institute for Legal Reform announced a renewed call for EU-level measures on professional third-party litigation funding (TPLF).
According to the Institute, the TPLF industry in Europe operates as a rapidly expanding, multi-billion-euro sector that finances lawsuits in exchange for a share of any proceeds, often with limited oversight. This situation raises concerns about profit-driven litigation and its economic impact on businesses within the region. The Justice for Growth initiative offers an opportunity to introduce balanced rules aimed at ensuring transparency and predictability in this area.
The European Commission has conducted a mapping study on TPLF, covering legislation, practice, and debate across EU Member States and selected non-EU countries. This study follows a European Parliament resolution that called for EU-level legislation on TPLF. Projections suggest that the global litigation funding market could experience significant growth in the coming years.
The U.S. Chamber Institute for Legal Reform advocates for legal reforms to promote fair and efficient civil justice systems. It focuses on issues such as third-party litigation funding, tort liability, and class actions both domestically and internationally. The organization aims to reduce excessive litigation while supporting policies beneficial to businesses and the economy.
