White Paper
Collective Actions and Data Risk Management
Key considerations for establishing a defensible data framework and preparing for downstream challenges in complex mass claims litigation
Collective actions, also known as class actions or mass claims, have become increasingly prevalent in the U.K. and European Union due to recent legislation and precedent-setting cases. There has been an estimated 120% increase in the number of collective actions in the EU since 2018, and in 2023, class actions in the U.K. were collectively seeking in excess of €120 billion.
The rise in European collective actions is leading to complex legal issues requiring meticulous data management and robust technological solutions to build defence strategy, ensure compliance with the duty to preserve and plan for downstream disclosure exercises. This paper explores the nature of these actions. It provides effective strategies to minimise risk and maximise value and highlights key challenges and use cases for several data sources often considered for these matters.
Nature and Growth of Collective Action Matters in the U.K. and EU
Collective actions are characterised by their extended lifecycle, often spanning several years, and claims asserting multiple theories of harm on behalf of thousands or millions of individuals. The breadth of claims and multi year period often leads to a wide range of data sources and systems that require legal analysis, review and potential disclosure. Given this diversity and ever-increasing data volumes, it is crucial for legal teams to implement defensible, sustainable and adaptable data management strategies from the outset of a claim.
Rise of consumer class actions
The growth of consumer class actions has introduced new complexities in the legal landscape. Issues such as product liability, consumer and environmental protection, financial misconduct and data breaches have been framed in novel competition claims allowed in the Competition Appeals Tribunal in the U.K. The breadth of permissible claims is expected to expand further in the near future. Similarly, expansive regimes for collective redress are being developed across Europe through the implementation of the EU Representative Actions Directive. These developments have increased the risk for consumer-facing organisations due to the large number of claimants and overall damages asserted in opt-out claims and other group litigation. Additionally, these matters present increasingly complex data preservation obligations, particularly where large customer databases and proprietary systems require preservation and analysis.
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