Germany raises the standard for class action funding

Germany raises the standard for class action funding

February 25, 2015, Global Competition Review

Covington'sPeter Camesasca is quoted regarding a Düsseldorf court confirming that the funding model used by Cartel Damage Claims (CDC) in its case against cement cartelists is illegal.

"Peter Camesasca, at Covington & Burling in Brussels, says while the ruling is good news for defendants in that it makes group actions in Germany more difficult, it goes against a more general tide of increased litigation across Europe."

"The ruling does not outright ban collective claims in Germany, but it raises the bar for claimant vehicles like CDC and requires them to rethink their funding models," Camesasca says.