Class Actions Post Coronavirus—What Can We Expect?
The global financial crisis of 2008 brought with it a flood of class action litigation against big banks. A similar wave of litigation is expected in the post-COVID world. Indeed, it might be even more widespread. In recent years, the rules and procedures surrounding the formation of class action suits have become more sophisticated. Advances in the understanding and use of Litigation Finance make pursing class actions less complicated. City AM reports that class action suits are already popular in the US, and the UK is expected to follow suit as big banks are held accountable for malfeasance toward their customers. The thinking in legal circles is that increased litigation is a foregone conclusion post-Coronavirus. Christopher Bogart, CEO of Burford Capital, has stated that the reality of the Coronavirus is that it will bring about a huge number of legal disputes. Questions surrounding insurance coverage or contract specifics will be plentiful. Expansive access to litigation funding means many of these cases will go the distance in court. Businesses are already forming groups to take on insurers and others who have already refused to meet their contractual obligations during shutdowns and work stoppages. One such group, Hiscox Action Group, is pursuing claims against Hiscox insurance, with funding from Harbour Litigation Funding. The use of social media makes finding claimants for class action suits easier than ever. Combined with the wealth of funding provided by third-party funders, it’s easy to understand why class action suits will be a popular means of seeking recompense after the pandemic is behind us.