Hot Legal Topics — Tuesday

Period: Last 4 days (Fri–Mon)

New Legislation / EU Directives

• US EFAA (Ending Forced Arbitration of Sexual Assault Act) in Focus in Platform Class Actions: Three US Senators reference the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) of 2022 in an amicus brief filed in the Roblox proceedings [1–3]. The Act removes the basis for compelled private arbitration in claims involving sexual assault and exploitation, securing plaintiffs' access to public courts and preventing corporations from deflecting waves of litigation through terms and conditions clauses [1–3].
• Debate over Litigation Funding Disclosure Bills: Legislative efforts to mandate disclosure of third-party litigation funding are gaining momentum in the United States [4, 5]. In Texas, the Supreme Court is pressing its advisory committee to revise disclosure rules [5]. Industry representatives warn that such disclosure bills could significantly undermine patent enforcement by small businesses and individual inventors [4].
• Statutory Health Insurance Contribution Rate Stabilisation Act & Abolition of Written Notification Requirement: The Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband — vzbv) criticises the statutory removal of the obligation for health insurers to notify policyholders by letter of increases to their supplementary contribution (Zusatzbeitrag) [6, 7]. The vzbv is calling on the Federal Government to reinstate this obligation, arguing that the special right of termination is effectively rendered meaningless for 76% of policyholders due to a lack of awareness [7, 8].
• Need for Statutory Framework Governing ePA Data Research: The Federal Commissioner for Data Protection and Freedom of Information (Bundesbeauftragter für den Datenschutz und die Informationsfreiheit — BfDI) is calling for clear statutory parameters governing the automatic extraction of medication data from the electronic patient record (elektronische Patientenakte — ePA) for research purposes, scheduled to commence at the end of October 2026. The aim is to safeguard policyholders' trust and prevent a wave of objections [9, 10].

Federal Court of Justice / Landmark Rulings

• CJEU Landmark Ruling on Vodafone Price Increases: A judgment of the Court of Justice of the European Union (CJEU) confirms the unlawfulness of Vodafone's unilateral fixed-line price increases [11]. The ruling substantially strengthens the position of consumer protection advocates in the ongoing collective redress action; the potential reimbursement at stake for affected customers amounts to up to €26.7 million [11].
• Federal Court of Justice Ruling on Debt Collection Costs (EOS Investment GmbH): The Federal Court of Justice (Bundesgerichtshof — BGH) has dismissed a collective action brought by the vzbv against EOS Investment GmbH [12]. The consumer protection organisation had alleged that the company artificially inflated debt collection costs — a claim the BGH rejected [12].
• Federal Constitutional Court Landmark Ruling on Civil Servant Remuneration Triggers Follow-On Litigation: Building on the landmark decision of the Federal Constitutional Court (Bundesverfassungsgericht — BVerfG) concerning civil servant remuneration in Berlin, the Judges' Association of Mecklenburg-Vorpommern is bringing proceedings before the state's constitutional court to secure a constitutionally compliant increase in judicial salaries [13].

Trends in Litigation Funding & Legal Tech

• Tightening of Disclosure Requirements for Funders: The Texas Supreme Court is advancing rules on the disclosure of litigation funding arrangements, having previously rejected equivalent recommendations the year before [5].
• Litigation Funding as a Shield for Inventors and Patent Holders: Recent analyses highlight the growing importance of litigation finance as a central instrument for protecting and monetising patent portfolios and the estates of inventors in disputes against well-capitalised corporations [4].
• Capital Raising by Market Leaders: Burford Capital is issuing USD 300 million in secured notes (Secured Notes Offering) to refinance liabilities maturing in 2028 and to deploy fresh capital into major proceedings [4].
• Insolvency and Wind-Down Risks in the Market (Woodville): The administrators of funder Woodville report claims totalling £298.7 million against liquid assets of just £254,734, illustrating the significant distress affecting individual funding vehicles [4, 14].
• Power Struggles in Mass Tort Proceedings (Mariana Dam Litigation): The High Court declined to stay the Mariana Dam mass tort proceedings, while funder-backed law firm Pogust Goodhead obtained a court order preventing its removal from the case by a claimant committee [4].

💡 Would you like me to prepare a more detailed separate document on the developments in litigation funding or the implications of the CJEU ruling?