The signatories of this statement are closely following the ongoing discussions related to the oversight of Third Party Litigation Funding (TPLF). TPLF allows private financiers, like investment and hedge funds, to sign confidential deals with lawyers or qualified entities to fund lawsuits and arbitration in exchange for a cut of any settlement or judgment/award. The signatories express support for the European Parliament’s legislative own-initiative report on responsible private funding of litigation, which calls on the European Commission to propose sensible safeguards for effective oversight of TPLF in all areas of law and types of litigation.

The EU should work to promote access to justice while at the same time protecting all parties from opportunistic litigation, increasingly fuelled by TPLF. It is important for the investment climate in Europe that the EU supports justice systems that are effective, build trust, and dissuade a culture of litigation. These are essential ingredients for the ‘Justice for Growth’ strategy embraced by the Commission.