Group of people raising hands, representing community interest in various types of legal issues that could lead to group litigation.

What are the common causes for group litigation? Exploring typical legal issues

Lawyers initiate group litigation when a widespread issue impacts many individuals in a similar way. Rather than each person facing the costs and complexities of separate legal actions, group litigation brings these claims together, simplifying the process and boosting the chances of success. Certain types of legal issues, such as defective products or data breaches, frequently lead to group litigation because they affect large groups or entire communities. 

In this guide, we’ll explore some of the most common causes of group litigation, helping you determine if your issue might qualify for a collective claim. 

Types of legal issues that lead to group litigation 

Group litigation has become a powerful tool for addressing widespread harm, and certain legal issues are more likely to lead to this type of collective action. Let’s explore some of the most common causes for group litigation with examples of real-life claims*. 

1. Consumer rights violations 

When companies engage in unfair business practices or produce faulty products that affect a large number of people, group litigation often follows. Common causes include: 

Defective products 

When a product causes injury or damage, it can affect thousands. Examples include faulty cars, defective household appliances, or unsafe pharmaceuticals.  

One high-profile case is the ongoing group claim against Jaguar Land Rover for selling cars with defective diesel particulate filter (DPF) systems, which have led to excessive maintenance costs and safety risks for drivers.  

Another is the talcum powder claim against Johnson & Johnson. Lawyers allege the talc manufacturer knew its talc products contained potentially dangerous asbestos as early as the 1970s, but failed to warn customers. Despite claiming its products were safe to use, in 2023, Johnson and Johnson replaced talc with cornstarch in all its talcum powder products. 

False advertising 

Misleading claims about benefits or performance can also trigger group litigation. People who purchase products or services based on these false claims may seek compensation collectively if they have been harmed.  

A recent example involves UK universities. In this case, students are seeking compensation for missed teaching time during strikes and COVID-19 lockdowns. Many students felt the universities had misled them about the quality of education they would receive, given substantial parts of the academic year were disrupted without proper compensation or alternative arrangements.  

Unfair business practices 

Issues like overcharging or misrepresentation in contracts – such as hidden fees or misleading terms – are common triggers for group claims. 

A recent high-profile example is the “boundary fare” claim against Stagecoach South Western Trains. In this case, passengers who were overcharged between 2015 and 2017 successfully launched a group claim. The operator agreed to a £25 million settlement to compensate the affected passengers. 

Another well-known example of unfair business practices is the iPhone ‘batterygate’ case. In this group claim, Apple faced allegations of deliberately slowing down older iPhone models to encourage users to buy new devices or batteries. Apple admitted software updates had slowed certain iPhones to prevent battery issues, but the company was criticised for not being transparent with customers. This resulted in lawsuits across various countries and a $500 million settlement to compensate affected users in the US.  

2. Financial mis-selling 

Another common cause for group litigation is financial mis-selling. This can involve pensions, insurance, investments, or other financial services. Financial mis-selling typically occurs under the following conditions: 

  • Unsuitable products: Individuals are sold products that do not match their needs, risk tolerance, or financial goals. 
  • False or incomplete information: Customers receive inaccurate, misleading, or insufficient information about the financial product. 
  • Pressure tactics: Salespeople may pressure individuals into purchasing financial products they don’t fully understand or need. 

A well-known example involves the pension mis-selling scandal, where advisors persuaded individuals to transfer their final salary pensions into high-risk investments, leading to significant financial losses.  

Another significant case is the energy commission scandal, where energy brokers sold long-term energy contracts to businesses while pocketing hidden commissions. These brokers failed to disclose the full terms of the deal, leading businesses to overpay for their energy.  

In Ireland, around 200,000 borrowers were impacted by financial mis-selling when banks and lenders aggressively sold risky mortgages. Many struggling families were encouraged to combine their debts into their mortgages, without being properly informed of the long-term risks during Ireland’s economic boom. To make matters worse, the banks later sold these mis-sold mortgages to vulture funds, leaving homeowners with eyewatering interest rates and significant financial stress. 

3. Data breaches and privacy violations 

Organisations that fail to protect sensitive data may violate data protection laws, such as the UK General Data Protection Regulation (GDPR). As data breaches can lead to widespread harm, including identity theft, fraud, and emotional distress, affected individuals often join group litigation to hold companies accountable. 

Examples of successful data breach group litigation claims include: 

  • The British Airways data breach, where the personal details of more than 400,000 customers were compromised. In 2021, this action was resolved on confidential terms following successful mediation and negotiation by a leading UK law firm. 
  • The Ticketmaster data breach, which compromised the payment details of thousands of customers. In 2022, Ticketmaster settled this data breach group action on a no-admission basis.  

There are several live data breach claims currently underway in the UK, including:  

23andMe 

The popular genetic testing company 23andMe suffered a data breach, exposing its users’ sensitive personal data. 

Arnold Clark  

One of the UK’s largest car dealers, Arnold Clark, experienced a cyberattack that compromised the personal information of millions of customers. 

Grindr  

The popular dating app for LGBTQ+ individuals faced legal action after it exposed sensitive personal information, including data related to users’ HIV status. 

EasyJet 

This airline experienced a significant data breach, which exposed the personal information and financial details of over nine million customers. 

Capita  

Outsourcing giant Capita suffered a cyberattack, putting the personal data of millions of pension holders at risk. 

MOVEit 

This secure file transfer service was compromised in a data breach, affecting organisations and their customers worldwide. 

Christie’s  

Cybercriminals targeted the famous auction Christie’s and compromised its clients’ personal and financial information. 

NHS 

Synnovis, which provides diagnostic services for the NHS, experienced a data breach with patient information affected. 

Ticketmaster 

In 2024, Ticketmaster experienced another data breach. Yet again, this is thought to have been caused by a third-party supplier. 

The Metropolitan Police  

A data breach exposed the personal information of current and former officers, leading to potential safety risks. 

 

2Plan 

The financial services company 2Plan suffered a data breach that compromised client information. 

Southern Water  

Southern Water experienced a data breach that exposed the personal data of its customers and employees. 

4. Environmental damage 

Environmental harm is another major cause of group litigation. This type of litigation arises when pollution, toxic exposure, or other ecological misconduct affects entire communities or large groups of individuals. Environmental damage can stem from several sources, including: 

  • Pollution: Harmful emissions or chemical leaks from factories and industrial plants can contaminate air, water, and soil, affecting public health. 
  • Toxic exposure: Prolonged exposure to hazardous substances like asbestos, lead, or industrial chemicals can lead to severe health conditions for large groups of people. 

A prime example of environmental group litigation is the case against the UK’s water companies for under-reporting pollution incidents. This group claim involves millions of customers who may have been overcharged while their water suppliers breached environmental laws. 

The dieselgate case is another example, with claims against Peugeot, Citroen, BMW, Ford, Volvo, Nissan, Renault and Volkswagen (amongst others). The claim alleges these companies installed “defeat devices” in vehicles to trick emissions tests, causing the cars to emit pollutants far exceeding legal limits.  

5. Workplace claims  

Systemic discrimination and unfair practices are becoming common causes for litigation, with large groups of employees facing the same unfair treatment. Common triggers for workplace-related claims include: 

Equal pay claims 

In recent years, major retailers like Tesco, Asda, Morrisons, Sainsbury’s, the Co-op, and Next have faced group claims from employees, often women, arguing they were underpaid compared to male colleagues for performing equivalent roles. 

Gig economy worker misclassification 

Drivers and couriers for companies like Uber, Bolt and Just Eat have filed group claims arguing they were misclassified as independent contractors instead of employees, which would entitle them to additional benefits like holiday pay and minimum wage protections. The Uber case resulted in a landmark Supreme Court ruling in 2020, granting Uber drivers worker status. This means they’re now entitled to rights such as National Minimum Wage and holiday pay. 

Why group litigation is ideal for these types of legal issues 

Group litigation offers a powerful approach to addressing the legal issues mentioned above. Here’s why it’s often the best route for claimants: 

Shared costs 

In group litigation, claimants share legal fees, making it more affordable to pursue justice.  

No-win, no-fee 

These agreements are standard in group claims, letting you pursue legal action without paying upfront costs.  

Increased legal power 

When numerous individuals unite, it strengthens their case and increases the pressure on defendants to reach a fair settlement or remedy the harm caused. 

Access to legal expertise 

Group actions are typically handled by law firms with expertise in collective litigation, so people benefit from professional legal advice and support. 

Accountability 

Group litigation ensures large corporations and institutions are held accountable for widespread wrongdoing.  

Efficiency 

By consolidating similar claims, group litigation reduces the burden on courts and streamlines the legal process.  

Fair compensation 

Group litigation ensures compensation is distributed fairly among claimants based on the extent of their individual harm.  

In conclusion 

Group litigation has proven to be a powerful tool for addressing various types of legal issues. By uniting claimants who have experienced similar harm, group litigation increases the likelihood of success, provides shared resources, and holds large corporations accountable for their actions. 

If you’ve been affected by the types of legal issues discussed, group litigation could be the right approach for you.  

Try Join the Claim’s eligibility checker to find out if you can join a current group claim. It’s simple, and you can do it all online! 

 

*The claim examples highlighted under the various types of legal issues in this guide (e.g. financial mis-selling, data breaches, environmental harm, etc.) are for illustrative purposes only, and may not represent the exact legal grounds of the ongoing claims. 

You may also like:

In January 2024, the High Court ruled that drivers could sue BMW for fitting some diesel vehicles with devices that tricked emissions tests. The illegal devices made it seem like BMW’s diesel cars were less-polluting than they actually were.
Asda store workers may be underpaid. Check if you qualify for an equal pay claim and take action to seek the compensation you deserve.
Capita’s data breach exposed pension holders’ personal data. Stay updated on the latest legal action, investigations, and regulatory responses.

You might also like

A UK lawsuit claims Johnson & Johnson’s talc products cause cancer. Learn about the case,...
Discover 10 essential facts about group litigation for first-time claimants. Learn how joining a group...
Flight delays and cancellations can completely disrupt your travel plans, costing you time, money, and...

Did you know we have a newsletter?

Sign up for our newsletter to stay up to date.