In the light of recent cases including the RBS rights issue litigation, collective actions in the English courts have been the subject of significant attention. Group redress in the financial services industry has historically been achieved by way of regulatory intervention and compensation, but increasingly banks are seen as potential deep-pocket defendants for group actions, usually backed by litigation funders. Group litigation orders ("GLOs") are one means by which multiple claimants can join together. While the framework for GLOs has been in existence for some years, it has not been particularly widely used until more recently, and there has been relatively limited guidance as to how and when the test for ordering a GLO might be satisfied. A recent Bristol Circuit Commercial Court decision gives helpful guidance on when GLOs are an appropriate means by which to allow collective actions to proceed.
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