Decree of December 10, 2025: Toward Two Distinct Systems for Third-Party Litigation Funding

---

Publié le 19/03/2026 par Jérôme Goy

INSURANCE LAW

The decree of December 10, 2025 (1), does not regulate “the” financing of lawsuits by third parties. In fact, it establishes two distinct systems. On the one hand, there is regulated, public, and supervised financing. On the other hand, there is financing that remains unregulated.

I. Funding under supervision: class-action lawsuits filed by accredited associations

The text applies exclusively to associations and entities wishing to file a national or cross-border class action (2). To do so, they must first obtain administrative approval. Most importantly, if they are funded by third parties, they must disclose this fact.

Article 7 of the decree requires that the following information be published on the website of the association or entity filing the class action:

• the list of funders (above certain thresholds) (3),
• their full identification (4),
• the amount of funding,
• and the key terms of the agreements (duration, type of funding [grant or loan], and any compensation).

The stated goal: to prevent conflicts of interest.

In practice, funding becomes transparent and traceable.

In an article published on December 18, 2025, L’Agefi notes that “the mandatory disclosure of amounts intended to finance class-action lawsuits […] is meeting with strong opposition from third-party litigation funders (5).” These third-party funders criticize what they view as excessive transparency, going beyond European requirements, and believe that the publication of these amounts could undermine the principle of equality of arms and discourage the financing of class actions in France. We share these concerns.

II. Other cases of third-party litigation funding: no change in the legal framework

The decree applies only to entities required to obtain approval for class actions. It does not establish a general framework for third-party funding of litigation. Other types of cases (commercial disputes, arbitration, individual actions, etc.) remain outside its scope. In such cases, no specific disclosure requirements are imposed.

Funding continues to be governed by general law and professional rules. The decree of December 10, 2025, therefore establishes a special, highly regulated framework for class actions brought by accredited associations, while allowing a pre-existing system of contractual freedom to continue to apply alongside it.