SUMMARY
Across Europe, collective actions are on the rise. Expanding liability regimes and the rapid growth of third-party litigation funding (TPLF) are fueling a new wave of lawsuits that reach far beyond traditional consumer claims. Ireland has until now been shielded by common law restrictions on TPLF, but that protection is weakening. The transposition of the EU Representative Actions Directive (RAD) opens the door to new collective claims, including those backed by commercial funders that invest in such litigation in order to make a profit.
Ireland is uniquely exposed to these developments. Its economic model relies heavily on foreign direct investment, particularly from the US. Of more than 460 collective action cases tracked in the EU over the past 18 years, 40 involved US companies, many of which operate their European headquarters from Ireland. Information and communication technology and life sciences sectors, two of Ireland’s most important economic engines, are among the most frequent targets of collective lawsuits. If the conditions for launching a collective action and granting access to TPLF become too favourable, Ireland – the only EU country with common law procedures, broad disclosure rules and English-language litigation could become an attractive venue for mass litigation … (more)
Oscar Guinea, Dyuti Pandya, Vanika Sharma and Renata Zilli, ‘Mass Litigation and the Future of Litigation Funding in Ireland and Europe’ (ECIPE, October 2025).
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