Class actions, often referred to as group litigation or group actions, allow multiple claimants to band together and litigate against corporations, offering an avenue for justice that might otherwise be financially or logistically inaccessible for individuals. Over the past decade, this branch of law has found fertile ground in the UK, culminating in landmark cases like the Post Office lawsuit, which have brought group litigation into the spotlight and reshaped the legal industry.
But while the demand for class actions continues to surge, attitudes toward this form of litigation are evolving, marked by a simultaneous rise in support from claimants, and backlash from corporations and media outlets. This duality reflects the complexity of group litigation’s role in modern law, where the promise of justice often intersects with business concerns and public perception.
The growing demand for class actions
The UK has witnessed a rise in class actions, driven by landmark cases and legislative developments that make collective redress more accessible. Data underscores this trend, where we see news stories mentioning the term ‘class action’ have increased by 48% annually (Source: Meltwater) and Google Searches for ‘group litigation’ are up by 27% YoY. This reflects the heightened public awareness and interest in such cases.
One high-profile example is the Post Office Horizon IT scandal, spearheaded by Freeths. Hundreds of sub-postmasters were wrongly accused of fraud due to faulty IT systems, leading to devastating personal and financial consequences. The litigation not only secured significant compensation for claimants, but also spotlighted the broader societal value of class actions in holding corporations and institutions accountable for their actions.
Beyond specific cases, legislative shifts, such as the Consumer Rights Act 2015, have created a more structured framework for group litigation. This has encouraged law firms to invest in dedicated class action teams (both claimant and defendant), recognising the financial and reputational potential of these cases from a business perspective.
The rise of anti-class action sentiment
Despite their growing prevalence, class actions have faced a surge of criticism as well. A recent analysis of media sentiment reveals that 17% of news stories mentioning class actions have been negative, a significant proportion when you consider class actions are a mechanism designed to empower claimants.
We’ve seen media turn on its heels in support of claimants when the Financial Conduct Authority and an adverse judgment in the Court of Appeal in 2024, saw claims management companies likely to payout over £30 million in compensation, and the firms ‘no win no fee’ model came under scrutiny.
This backlash often stems from businesses and industry groups that perceive class actions as a threat to their bottom line. Critics argue that such lawsuits encourage a ‘litigation culture,’ and that these claims burden courts and unfairly target corporations. High-profile cases, such as those filed against major tech companies over data breaches, have fuelled narratives that class actions are more about financial gain for claimants and law firms, rather than about achieving justice.
Media coverage has amplified these sentiments, with headlines often framing class actions as a costly, contentious battleground. This portrayal risks overshadowing the genuine societal benefits of group litigation, from holding negligent corporations accountable to securing redress for vulnerable individuals.
Balancing the scales of growth and scrutiny
The dual trends of rising demand and growing scepticism present both challenges and opportunities for firms specialising in class actions.
Expansion
The surge in class actions offers significant growth potential, particularly legal firms equipped with the resources and expertise to manage complex, multi-claimant cases. The increased media attention, while sometimes critical, also raises public awareness, driving more potential claimants to seek legal support.
For law firms, the focus should be on building robust class action teams that combine legal expertise with sophisticated data analytics to manage claimant groups, evidence, and case strategy. Firms that can demonstrate a track record of successful outcomes and transparent processes will be better positioned to attract claimants and navigate the evolving landscape. These firms often benefit from working with communications agencies, allowing them to amplify the messaging and work they’re doing for their claimants. For both claimant and defendant law firms, effective Litigation PR can play a critical role during ongoing cases.
Challenging negative perception
At the same time, law firms must contend with the narrative that class actions can be deemed controversial or profit driven. This requires proactive communication strategies to educate the public and media about the broader value of group litigation. Highlighting cases where class actions have delivered justice for communities or addressed corporate wrongdoing can help counteract negative perceptions.
Law firms should also work closely with businesses and regulators to address concerns about poor claims, fostering a balanced approach that maintains the integrity of the legal system while ensuring access to justice.
What are we likely to see in the future?
Looking ahead, several key trends are likely to shape the future of class actions in the UK. From firms developing specialist class action divisions, to ESG driven claims where climate change, workers rights or data privacy are debated. Investments in technology and the ability to handle large amounts of data will no doubt contribute to these themes. You can read more from our expert team and the legal trends they foresee in 2025 here.
We predict that the growing wave of anti-class action sentiment is unlikely to decline in the media as corporations and lobby group seek to protect their own interests. Law firms must be prepared to navigate scrutiny, emphasising transparency, answering for their actions, ethical practices, and the genuine societal value of their work.
The evolution of class actions in the UK reflects a legal landscape on the brink of change, shaped by growing demand, high-profile cases, and shifting public attitudes. While the backlash from businesses and segments of the media presents challenges, it also underscores the significance of this legal mechanism in holding corporations accountable and delivering justice for claimants.
For law firms, the road ahead requires a careful balancing act, showing opportunities for growth while addressing criticism head-on.