European industry bodies call for regulation of private third-party litigation funding (TPLF)

Posted on 14.11.2024

MedTech Europe, alongside key European industry bodies, urges the EU to introduce regulatory oversight of private Third-Party Litigation Funding (TPLF). The unregulated growth of TPLF has led to profit-driven entities financing litigation across the EU, which can result in abusive practices that impact businesses, consumers, and the integrity of the justice system. This unmonitored financing often encourages frivolous lawsuits that undermine trust in the legal system, harm innovation, and affect Europe’s economic stability.

Without regulation, TPLF creates a system where financiers, rather than claimants, profit at the expense of fair legal proceedings. We support a regulatory framework that emphasises transparency, ensures fair compensation, and protects both claimants and defendants from exploitative practices. By implementing EU-wide regulations, we can safeguard the balance and integrity of civil justice and reinforce Europe’s commitment to a just and competitive business environment.

For more details, please view our joint statement below.