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⚖️ Apple, Microsoft and the growing wave of UK class actions

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If you take just one thing from this email…

Over the past years, class actions have been growing in the UK, driven by more funding, technology, and consumer focus. These cases pose huge risks to companies, both financially and in terms of their reputation. They also offer law firms big opportunities — but only if they can manage the challenges that come with them (like managing their cash flow).

EDITOR’S RAMBLE 🗣

Rejection in law firm applications can feel so personal – like it’s a reflection of your abilities or worth.

But here’s a hard truth no one talks about: Luck plays a big role in the process.

I don’t think people really talk about it — I guess that’s because you can’t really do anything to control it.

But I think it’s useful to know.

So, I made a video breaking down how sometimes things out of your control can affect your application (and why you shouldn’t let it bother you).

Maybe it’s helpful.

- Idin 

⚖️ Apple, Microsoft and the growing wave of UK class actions

What’s going on here

Two tech giants, Apple and Microsoft, are facing class action lawsuits in the UK.

Microsoft  the company’s being accused of overcharging businesses that use rival cloud services (like Amazon Web Services).

Apple  they face claims that App Store fees are anti-competitive (Apple take 30% commissions on app sales and in-app purchases, which increase costs for developers).

Class action lawsuits like these have been growing in the UK over the last few years.

What are class action lawsuits?

Class actions (or “mass actions”) allow people in similar situations to bring a claim as a group.

In the UK, there are two main ways to bring these claims:

  • ‘Opt-in’ actions: These need individuals to actively take part. So, you need each person in that class to agree to join.

  • ‘Opt-out’ actions: These automatically include everyone who qualified unless they opt out. So, they end up being much bigger groups.

The UK introduced ‘opt-out’ actions under the Consumer Rights Act 2015 — it made larger claims possible. But ‘opt-out’ is still only limited to competition law issues and most UK group cases still require the ‘opt-in’ approach.

‘Opt-out’ is much more common in the US, which makes it easier to bring large class actions there.

Why are class actions growing in the UK?

💰 Funding: There’s been a rise in the number of third-party litigation funders. These are funds that cover the high costs of pursuing large-scale cases, which have allowed claimants to bring claims they couldn’t afford on their own (that’s how the Post Office Scandal was funded). The funders hope to make money from the compensation if they win the claim.

⚖️ Focus on consumer rights: There’s been an increased focus on consumer rights. For example, in 2022 a mass action was brought against Johnson & Johnson over claims that its talcum powder caused cancer. People are increasingly willing to hold corporations accountable, and the action against Microsoft and Apple show this too.

🖥️ Technology: Things like case management tools, e-signing platforms, and electronic portals have made the logistics of mass claims easier. So, law firms can manage big groups of claimants more efficiently.

Why should businesses care?

Mass actions can harm corporations in two big ways: (1) their pockets, and (2) their public image.

For example, Johnson & Johnson’s talcum powder litigation meant they had to pay billions in settlements and had to recall a bunch of products.

Microsoft and Apple also face risks to their reputations as more public attention will be drawn to their alleged bad behaviour.

Why should law firms care?

Class actions can be *hugely* profitable work for commercial law firms — the payouts can be in the billions. Plus, the cases are usually so big that they can grab the headlines (which means more exposure for the firm).

But despite this, there are a bunch of challenges that come with this type of work:

🏦 Funding and cash flow: Litigation funding helps make big claims possible, but it’s still a cash flow risk for law firms. Cases take years to resolve, so firms have to pay for things like staff and office costs upfront without getting paid during that time. They usually earn higher fees if they win, which means losing a case can cost them a lot. Tom Goodhead (founder of Pogust Goodhead) said some companies even delay cases on purpose, hoping the law firm runs out of money.

🛑 Regulatory and procedural hurdles: It’s still quite hard to bring big mass actions in the UK. The courts need to allow you to bring these types of claims — and they often have strict requirements. Here’s a guide from Pinsent Masons on how courts make these decisions. On top of these challenges, last year a Supreme Court decision made it uncertain whether litigation funding agreements were enforceable at all — which has worried a lot of funders.

🧩 Case complexity and management: Coordinating thousands of claimants with different circumstances still takes a lot of time and money. Firms need to invest in tech to help them out but, because of their scale, these cases are still more demanding to handle than regular litigation.

Basically, this area of work is high-reward, but also high-risk.

Which firms in the UK do this type of work?

Source: Legal 500

These are the top UK firms specialising in group litigation for claimants:

  • KP Law

  • Leigh Day

  • Stewarts Law

  • Hausfeld & Co

  • Pogust Goodhead

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IN OTHER NEWS 🗞

  • 🇬🇧 Just Eat is dropping its listing on the London Stock Exchange, keeping only its Amsterdam listing. The company said the costs and regulatory headaches of being listed in London were too much, especially since its shares barely trade there. This trend isn’t new — other big names like TUI and Woodside Energy have also left the London Stock Exchange this year.

  • 🇮🇪 Simmons & Simmons is one of the first firms to launch a solicitor-barrister partnership in Ireland, thanks to new rules allowing this. The Legal Services Regulatory Authority (LSRA) introduced this change in September, aiming to boost flexibility and efficiency in the legal sector. These partnerships allow firms to share costs and risks, making it a big shift for Ireland’s legal market. An LSRA survey suggests more firms might do the same in the next five years.

  • 🇱🇺 Herbert Smith Freehills and Simpson Thacher are opening offices in Luxembourg, focusing on private capital. HSF brought in three senior lawyers, while Simpson Thacher hired three funds partners for its 2025 launch. Why Luxembourg? A tax-friendly setup and EU access make it a hotspot for private equity and venture capital. Over half of European private capital funds launched this year are based there.

  • 📱 Amazon creator Sydney Gifford is suing fellow influencer Alyssa Sheil, claiming Sheil copied her “beige aesthetic.” Gifford claims Sheil’s also stolen her content style and even her haircut while promoting similar Amazon products. Sheil argues that overlap is common since Amazon provides influencers with the same product trends and guidance. Gifford’s seeking $150k in damages and for Sheil’s content to be removed. Do you think Gifford has a case? 👇️ Reply to let me know your thoughts.

AROUND THE WEB 🌐

STUFF THAT MIGHT HELP YOU 👌

  • 📹️ Free application help: If you're applying to commercial law firms, check out my YouTube channel for actionable tips and an insight into the lifestyle of a commercial lawyer in London.

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