Class actions are big business in Europe – and show no signs of slowing down. That was the headline finding of CMS’s 2024 European Class Action Report, which labelled 2023 as another year of sustained and significant growth in cases. Between 2018 and 2023, £120bn in damages were sought, the report said.

Nowhere was that truer than in the UK, where CMS calculates that 540 million potential members were involved in competition class actions last year – the equivalent of eight actions per person. That reflected a 170% increase from 2022’s figure of 200 million and ensured the UK maintained its position as the top jurisdiction in Europe for class actions, with claims totalling more than €78.68bn

In the UK, competition class actions dominated, accounting for more than half of the total value claimed. A landmark settlement in December 2023, which saw the Competition Appeal Tribunal (CAT) approve a £1.5m settlement in the McLaren roll-on/roll-off car delivery case, set a precedent for future settlements.

Other types of claims, including cases arising from the Covid-19 pandemic relating to business interruption and insurance claims, are also increasing, according to the report.

However, the number of opt-out claims in the UK, while still strong, stagnated last year thanks largely to the UK Supreme Court PACCAR decision of July 2023, which rendered thousands of litigation funding agreements unenforceable. Emergency legislation to reverse the ruling’s impact is currently stalled following July’s UK general election.

The report also highlighted broader trends in Europe, with the 133 class action claims filed in 2023 representing a 10% increase on 2022’s figure of 121 claims, nearly double 2019’s figure of 69.

CMS partner Kenny Henderson said the surge in class action claims across Europe reflected an increasingly complex legal landscape. He described the number of claims as “extraordinary”, given that actions had only been possible since 2015. He also noted that the number of class action claims had “hugely increased since 2020”.

While the UK accounted for 63% of all class action claims in 2020, by 2023 that proportion had fallen to 29%, reflecting a rise in the number of actions across Europe. Portugal, accounting for 23% of all claims, surpassed the Netherlands (18%) with claims valued at €48bn compared to the Netherlands’ figure of €35bn.

The report noted while the Netherlands was a traditional hotspot for class actions, the number of actions in Portugal seeking monetary payment had increased by around six times compared to the previous year. This marks a significant shift in the European class action landscape.

The number of actions also increased in Germany, which accounted for 8% of European class actions, as well as Poland (6%) and Italy (4%), both countries having not featured in the 2020 report.

The report underscored the impact of the Representative Action Directive and enhanced access to litigation funding.

Zsolt Okányi, CMS’s global head of dispute resolution, said: “While the UK continues to lead in terms of risk, the rapid rise in claims in Portugal and the Netherlands signals a broader trend. The increased availability of litigation funding and advancements in technology have facilitated the pursuit of mass claims and made it easier for claimants to organise and file actions.”

The report highlighted increased activity by non-governmental organisations and the impact of the new Product Liability Directive, which is due to come into force imminently and “could materially increase litigation and class action risk”.