Hot Legal Topics — Friday

Period: Last 3 days (Tue–Thu)

New Legislation / EU Directives

No new legislation or EU directives with identifiable mass litigation potential have been identified during this period. (The criminal law package adopted by the Cabinet regarding attacks on police officers, medical personnel, and train conductors relates to criminal law, not civil mass claims.)

BGH / Landmark Judgments

Subscription price increase clause struck down (BGH, judgment of 1 October 2026 – III ZR 205/25): The Third Civil Senate declares invalid a clause used in the general terms and conditions of a subscription provider (including delivery and streaming services) governing increases to "membership fees", finding it in breach of the transparency requirement. Specifically affected: legacy Amazon Prime customers, who for the time being revert to paying the previous, lower price. Mass impact: The clause was used on a widespread basis vis-à-vis consumers — significant potential for restitution claims and follow-on litigation by all affected parties. Links: https://www.lto.de/recht/nachrichten/n/bgh-iiizr20525-amazon-prime-preiserhoehung-agb?r=rss | https://www.bundesgerichtshof.de/SharedDocs/Pressemitteilungen/DE/2026/2026184.html

Porsche–VW capital market model proceedings concluded (BGH): The BGH upholds the findings of the OLG Celle in substance: Porsche did not engage in unconscionable deception of the capital market in connection with the failed VW takeover attempt. This brings the multi-billion-euro investor dispute to a close — with far-reaching consequences for the large number of investors participating in the model proceedings. Links: https://www.lto.de/recht/nachrichten/n/bgh-iizb2122-porsche-vw-uebernahme-musterverfahren-anleger-kapitalmarkt?r=rss | https://www.bundesgerichtshof.de/SharedDocs/Pressemitteilungen/DE/2026/2026181.html

Extended confiscation — Grand Panel for Criminal Matters (BGH): Clarification of the requirements for asset recovery in criminal proceedings (the asset in question need not have been present in the defendant's estate) — with significant implications for confiscation practice across a large number of proceedings. Link: https://www.lto.de/recht/nachrichten/n/gsst125-bgh-erweiterte-einziehung-vermoegen?r=rss

To watch — Condominium owners' association compensation claim (BGH hearing scheduled 4 December 2026, V ZR 259/25): The Fifth Civil Senate is set to hear argument on the question — disputed since the 2020 reform of the Condominium Owners' Act (WEG) — of whether a condominium owners' association (Wohnungseigentümergemeinschaft) must bear strict liability, i.e. without fault, for damage to individually owned units caused by influences emanating from the common property (e.g. water damage). The outcome is open, but the case carries broad practical relevance for condominium owners throughout Germany. Link: https://www.bundesgerichtshof.de/SharedDocs/Pressemitteilungen/DE/2026/2026183.html

Trends in Litigation Funding & Legal Tech

• Market consolidation among funders: Litigation Capital Management ceases operations following a loss of A$165.7 million for the financial year and enters portfolio run-off.
• Regulatory pressure intensifying: Lawyers acting for United Petroleum file a complaint against two litigation funders with the Australian regulator ASIC, alleging inflated valuations in marketing materials distributed to investors.
• Volume growth in group actions: KP Law's collective action against the Binance group (£250 million) has already attracted 2,700 claimants; CASL is funding a new shareholder class action against Cochlear in connection with its FY26 profit guidance.
• Litigation risk for claimants becoming apparent: The Govia Thameslink collective action concerning rail fares has been decertified after no replacement class representative could be found; in Queensland, a court stays an insider trading class action pending the provision of security in the amount of USD 630,000.
• Funding as a strategic capital allocation decision: Burford Capital (Charlie Rooke) describes litigation finance in UK corporates as increasingly being treated as a straightforward capital allocation decision rather than a niche subject.
• Tax pitfalls: A new practice guide warns claimants to clarify the tax treatment of litigation funding arrangements prior to signing — citing the risk of a double tax charge arising upon both the receipt and the recovery of funds.