The parties to the case need protection from private investors who want to make a profit, according to MEPs. On 13 September, they adopted the motion for a resolution by Axel Voss (EPP, German) by 504 votes to 57 with 65 abstentions.
“There is a rapidly expanding global trend of hedge funds investing in legal proceedings to make enormous profits on the back of people who seek justice after suffering wrong”, said rapporteur Axel Voss.
In the resolution, it is suggested that the Commission should propose a directive to regulate such third-party funding. For example, there should be a cap on the profits that investors can earn if the case is successful for their client.
MEPs are also calling for a system of accreditation for third-party funders that commits them, so to speak, and provides transparency to the public who might use the funding services.
In addition, MEPs say that the courts should be aware of the existence of commercial funding in a case, as well as the identity of the funder of the case. This is generally not the case at present, they note in the resolution.
See the report: https://aeur.eu/f/31l (Original version in French by Léa Marchal)