Lord Hodgson challenges the privitisation of securities law enforcement in the UK and warns against opening the floodgates to US-style litigation
16th Dec 2015
Lord Hodgson challenges the privitisation of securities law enforcement in the UK in a letter to the editor of the Financial Times in response to an article, “Class actions: go sue yourself”. Hodgson asserts that the UK has already adopted US-style class actions by way of the Consumer Rights Act, and that allowing US-style class actions in other fields will open the litigation floodgates, most likely benefitting claimant lawyers and third party litigation funders the most.
Hodgson discourages the introduction of private enforcement, questioning the economic benefit and noting that financial regulatory bodies are already present to enforce the law.
Hodgson concludes, “I am concerned that we may be moving towards a litigation culture. Our civil justice system has been a model for the world, so we should all be concerned about the importation of features — such as routine securities litigation and class actions — that have shown themselves to be open to abuse and opportunism in the US.”
Read the full letter here.