Class & Mass Action Defense

Group Visual Class and Mass Action Defense quadratisch

Companies are increasingly exposed to attacks by a commercial litigation industry and professionally drafted claims brought by consumer associations – this both at an international level and at home. Business activities in the past can lead to extensive legal disputes, some as mass proceedings consisting of thousands of individual legal actions, but increasingly also by pooling claims into litigation vehicles and as part of collective redress (“class actions” in the widest sense). Antitrust damages, data privacy, incorrect capital markets information, diesel emissions, consumers’ cancellations rights, the legislation on general terms and conditions and interest adjustment clauses are topical issues that are of great commercial significance for companies.

These kinds of legal proceedings are gaining new momentum as a result of the entry of German and foreign litigation financiers into the market, use of legal tech and specialisation on the part of legal advocates who actively recruit claimants and concentrate claims worth many millions of euros in structured litigation vehicles. Besides this, European and German legislators are increasingly turning to private enforcement and instruments for collective redress. Group actions under the German Capital Markets Model Case Act combine legal actions by disappointed investors, consumer associations use European “representative actions” to attack general terms and conditions clauses, and the new German action for a collective declaratory (“model” or “test”) judgment brought by consumers is the legislator’s reaction to the diesel affair. With the representative action, the new legal development towards collective forms of legal action will continue across borders.

To be able to defend your company effectively, is it necessary to devise a customised strategy. A clear view of the key legal points is vital for an economically successful defence against claims. Top-quality legal work forms the basis for a successful defence in the particular case. Moreover, practical experience of averting class actions is required, irrespective of whether they are filed as a litigation vehicle or by collective redress. Efficient legal project management, scalable structures and targeted use of legal tech are powerful tools that can be used to handle large-scale multi-party actions efficiently.

Noerr is a pioneer when it comes to defending against class and mass actions. With a specialist team of over 40 legal experts, Noerr’s Class & Mass Action Defense practice group advises regularly on defending against actions for a model judgment brought by investors, model declaratory proceedings and representative actions by consumer groups and associations as well as defending against claims by structured litigation vehicles and mass actions.