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The CJC’s Review of Litigation Funding Will Have Far-Reaching Effects

The CJC’s Review of Litigation Funding Will Have Far-Reaching Effects

The following is a contributed piece by Tom Webster, Chief Commercial Officer at Sentry Funding.

Reform is on its way for the UK’s litigation funding sector, with the Civil Justice Council firing the starting gun on its review of litigation funding on 23 April.

The advisory body set out the terms of reference for its review, commissioned by lord chancellor Alex Chalk, and revealed the members of its core working group.

The review is working to an ambitious timetable with the aim of publishing an interim report by this summer, and a full report by summer 2025. It will be based on the CJC’s function of making civil justice ‘more accessible, fair and efficient’.

The CJC said it will set out ‘clear recommendations’ for reform in some areas. This includes consideration of a number of issues that could prove very significant for funders and clients. These include:

  • Whether the sector should be regulated, and if so, how and by whom;
  • Whether funders’ returns should be subject to a cap; and if so, to what extent;
  • The relationship between third party funding and litigation costs;
  • The court’s role in controlling the conduct of funded litigation, including the protection of claimants and ‘the interaction between pre-action and post-commencement funding of disputes’;
  • Duties relating to the provision of funding, including potential conflicts of interest between funders, lawyers and clients;
  • Whether funding encourages ‘specific litigation behaviour’ such as collective action.

The review’s core working group will be co-chaired by CJC members Mr Justice Simon Picken, a Commercial Court judge, and barrister Dr John Sorabji. The four other members are:

  • High Court judge Mrs Justice Sara Cockerill, who was judge in charge of the commercial court 2020 – 2022, and who is currently involved in a project on third party funding for the European Law Institute;
  • Academic and former City lawyer Prof Chris Hodges, chair of independent body the Regulatory Horizons Council which was set up to ensure that UK regulation keeps pace with innovation;
  • Lucy Castledine, Director of Consumer Investments at the Financial Conduct Authority; and
  • Nick Bacon KC, a prominent barrister and funding expert who acts for both claimants and defendants

The CJC had said that it may also bring in a consumer representative, as well as a solicitor experienced in group litigation.

In a sign that the review seeks to be informed by a wide range of views, the CJC has also extended an invitation for experts to join a broader consultation group, which will directly inform the work of the review and provide a larger forum for expert discussion. Meanwhile the advisory body has said there will also be further chance ‘for all to engage formally with this review’ later this year.

Given the broad remit of the review and significant impact that its recommendations may have on the litigation funding industry, litigation funders, lawyers and clients would be well advised to make the most of these opportunities to contribute to the review.

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Global Funding Dynamics Are Reshaping Australian Class Action Risk

Australian companies face a class action landscape increasingly shaped by events beyond their borders, according to new analysis warning that overseas litigation, foreign regulatory activity, and global litigation funding flows now operate as leading indicators of claims that later emerge at home. For boards and executives, the message is that domestic precedent alone no longer defines exposure.

As reported by Corrs Chambers Westgarth, plaintiff firms are explicitly modeling Australian claims on foreign proceedings — in one instance announcing it was "investigating how an Australian claim could be run" following a U.S. technology ruling. The pattern spans medical products, automotive, and technology, with expansion anticipated into privacy, data, cyber, and climate-related disputes.

Foreign regulatory enforcement frequently acts as the catalyst. When overseas regulators scrutinize issues such as PFAS contamination or particular medications, Australian plaintiff firms often follow, leveraging the country's flexible consumer protection framework to build comparable claims.

Litigation funding plays a central role in this dynamic, with capital moving across jurisdictions to balance risk and return. The analysis notes that recent Australian court decisions — including rulings on common fund orders and confirmation of soft class closure — are expected to attract greater global funding capacity, potentially increasing both the volume and the resourcing of claims.

The practical takeaway for senior decision-makers is to monitor international developments proactively. Understanding overseas litigation strategies, regulatory priorities, and funding trends has become essential to anticipating exposure before Australian proceedings materialize.

Which? Advances £3 Billion Funded Class Action Against Apple

The UK's Competition Appeal Tribunal has certified a £3 billion collective claim against Apple, allowing one of the country's largest consumer actions to proceed toward trial. The case, brought by consumer group Which?, alleges that Apple abused its dominant position in the iOS ecosystem by unlawfully favoring its own iCloud service over competing cloud storage providers.

As reported by The Global Legal Post, the tribunal certified the proceeding on June 25, 2026, sweeping in roughly 39 million UK consumers who used iCloud between November 2018 and June 2026. The opt-out structure means eligible UK residents are automatically included, while non-UK residents from the relevant period may opt in by October 8, 2026. Successful class members could recover up to £77 each, with trial scheduled for October 2028.

Which?, acting as class representative, has the backing of Litigation Capital Management's UK subsidiary, which is funding the claim. Notably, the tribunal dismissed Apple's objections to that funding arrangement — a point of continued significance as UK courts refine the rules governing third-party finance in the wake of the PACCAR decision.

Apple rejected the allegations, stating that it "rejected any suggestion that our iCloud practices are anti-competitive" and pointing to "plenty of alternatives to choose from." The certification marks another milestone for funder-backed collective actions in the UK, where well-capitalized consumer claims against major technology platforms continue to test the limits of competition law.

Pogust Goodhead Secures $150M and Quinn Emanuel as BHP Damages Battle Looms

Pogust Goodhead has lined up fresh capital and elite co-counsel for the next phase of its landmark claim against mining giant BHP over the 2015 Mariana dam collapse in Brazil — one of the largest group actions ever brought in the English courts. The firm announced $150 million in new funding from Gramercy Funds Management, with an initial $85 million tranche, alongside a strategic partnership with U.S. litigation powerhouse Quinn Emanuel.

As reported by The Global Legal Post, Quinn Emanuel will join as co-counsel for the quantum phase of proceedings, led by partner Justin Michelson and beginning in October 2026. The injection of funding and firepower comes as the case shifts from establishing liability to determining how much BHP must pay claimants.

The litigation has already cleared significant hurdles. In November 2025, Justice O'Farrell ruled BHP "strictly liable" for the Fundão dam failure, and the Court of Appeal rejected BHP's bid to challenge that finding in March 2026. Pogust Goodhead has secured an interim costs award of roughly £43 million, with claimants awarded 90% of their Stage 1 costs.

The road ahead remains long. The Stage 1 quantum trial is set for October 2026, with further proceedings on causation, loss, and damages scheduled across 2027 and closing submissions expected in March 2028. Damages assessments could extend well beyond 2030, underscoring both the scale of the claim and the staying power that third-party capital provides.