UK Court of Appeal confirms that litigation funders can receive a share of damages prior to distribution to class members
May 14, 2025
UK Court of Appeal confirms that litigation funders can receive a share of damages prior to distribution to class membersMay 14, 2025 What is the background?Competition class actions remain a continuing theme in the UK, with 56 active claims currently before the Competition Appeal Tribunal (“CAT”). Those claims have an estimated combined damages value in excess of £160 billion. The expansion of the UK competition class actions regime has been driven in part by the availability of litigation funding. However, the funding arrangements for collective proceedings have been the subject of judicial scrutiny in a number of cases, most notably by the Supreme Court in its 2023 decision in PACCAR finding that certain litigation funding agreements are unenforceable in the context of opt-out collective proceedings. For more information, see our previous briefing here. In Gutmann v Apple, the Court of Appeal considered two related questions in relation to the funding arrangements:
What was the outcome?The Court of Appeal held that:
Key to the Court of Appeal’s decision was the fact that, regardless of the terms of the LFA, the CAT has overriding supervisory powers to control the timing of and the amounts paid to a funder as a return on their investment. What next?The Defendant’s third ground of appeal, that the LFA is unenforceable in light of the Supreme Court’s decision in PACCAR, will be heard alongside a number of related cases in June 2025. Latest Insights
Latest News
Latest Events
legal updates September 18, 2026 Rev. Proc. 2026-32 provides flexibility for treatment of R&D costs and long... legal updates September 17, 2026 NCTI almost works the way GILTI was advertised: Treasury and IRS propose ne... legal updates September 17, 2026 Out with a Bang: Eleventh Circuit Holds S-Corp Designation Not Property of ... legal updates September 16, 2026 DOL’s MHPAEA playbook: New enforcement priorities and self-evaluation tool client news September 21, 2026 All change: Eversheds Sutherland advises DfT on Chiltern Railways transitio... media mentions September 15, 2026 Worldwatch: Merger Control firm news September 10, 2026 Kuang Chiang, International Trade and Sanctions Attorney, Joins Eversheds S... media mentions September 04, 2026 Prompt injection exposes a wider AI governance gap: what GCs should do now in-person 2026 BDC Roundtable September 23, 2026 Washington DC, United States virtual Employment law in the Kingdom of Saudi Arabia September 29, 2026 9.30am - 12.30pm (BST) Virtual virtual Energy Transition Series: Energy Transition and Pricing Volatility October 08, 2026 10:00 ET | 15:00 BST | 16:00 CET in-person Labor relations conference - turning legal change into workplace reality October 08, 2026 10.00am - 4.00pm (BST) London, United Kingdom |