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Litigation Funding: What Businesses Need to Know
France’s recent reform of class actions under the DDADUE Act does more than broaden the scope of collective proceedings. It also opens the door to litigation funding, now expressly permitted to finance class actions.
For businesses, this development deserves close attention.
The use of third-party funding may facilitate the launch of complex claims and increase the number of collective actions across a range of sectors.
The reform nevertheless introduces several important safeguards:
- transparency regarding the source of funding;
- oversight of potential conflicts of interest;
- judicial powers to sanction non-compliance with these requirements.
For businesses, this reform highlights the importance of anticipating litigation risks, assessing exposure to class actions, and ensuring that risk management strategies remain aligned with this evolving legal framework.
The growing recognition of litigation funding marks a significant development in the French litigation landscape. It remains to be seen how this reform will shape the way businesses approach complex disputes in practice.
A particularly interesting topic in light of this article : Decree of December 10, 2025: Toward Two Distinct Systems for Third-Party Litigation Funding
Read the article Class Action Reform: A New Beginning? on L’AGEFI website
