United Kingdom – Third-party funding related developments
The CAT varied the collective settlement approval order and authorised payment to Innsworth of approximately £62.56 million plus accrued interest. This included a 50% profit return on certain funded amounts.
Litigation Funding after PACCAR: Legislative Reform and Investment Planning
The UK Government has reaffirmed its intention to legislate on litigation funding agreements following PACCAR. In an answer to Sir Julian Smith dated 15 September 2026, the Ministry of Justice identified three objectives: greater market certainty, access to justice and proportionate safeguards ensuring fair treatment of claimants.
Litigation Funding: Transparency and Governance in the Regulatory Debate
Civitas’s August 2026 report, Litigation Nation: The growth of a class action claims culture, by Danna Brown, contributes to the debate on collective proceedings and litigation funding in England and Wales.
The report advocates more detailed disclosure of ultimate beneficial ownership, proactive sanctions screening and stronger statutory regulation. It raises concerns about decision-making authority, conflicts of interest and claimant recoveries.
For litigation funders, these recommendations highlight the value of demonstrable governance: documented sources of capital, clearly allocated responsibilities and transparent provisions governing settlement and returns.
In my view, proportionate regulation should support both investor confidence and effective access to justice. Comparative experience offers valuable guidance on designing safeguards that accommodate the economic realities of collective litigation.
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