Class Actions in Europe Reach Record Numbers

At a Glance

• According to the report, 133 claims were filed in 2023 across Europe — a record number.
• Around 30% of claims filed were in the product liability, consumer law or personal injury space.
• As more EU member states implement the Representative Actions Directive, and as England continues to finesse its regime with cases proceeding through courts, this growth will likely continue at an increased pace.

As reported by Law.com, a new report by CMS shows that the number of class actions in Europe continues to grow following the implementation of the Representative Actions Directive (RAD) in most European Union member states. The RAD provides for collective consumer lawsuits in the European Union.

According to the report, 133 claims were filed in 2023 across Europe — a record number. The popular jurisdictions for claimants filing new collective actions were the perennial favourites, such as England, the Netherlands and Portugal. These jurisdictions remain ‘high risk’ for companies operating there. However, there was also significant growth in numbers in Germany and Italy. Those jurisdictions have only just implemented the new RAD regime, so their numbers will likely increase as lawyers get to grips with the new processes.

The value of claims across the European Union and England have also continued to grow. Portugal in particular has seen a massive increase in the value of claims before their courts, with €45.85 billion in total quantum of claims between 2016 and 2023. The UK’s equivalent quantum was €144.98 billion and the Netherlands was €35.33 billion.

Opt-out claims for the first time also outnumbered the number of opt-in claims filed, with 68 opt-out claims filed to 59 opt-in claims.

Around 30% of claims filed were in the product liability, consumer law or personal injury space. Competition claims made up around 20% of claims filed. The tech industry has faced the largest number of claims ever seen by them in class actions, as have consumer product manufacturers.

As we previously have written, the RAD is expected to transform the litigation culture in Europe, and these numbers show a steady rise in both the number and quantum of damages claimed in class actions. As more EU member states implement the RAD, and as England continues to finesse its regime with cases proceeding through courts, this growth will likely continue at an increased pace.