Cap. 635 Art. 11Funding of representative actions for redress measures.

(1) Without prejudice to any other provision in any other law prohibiting third party litigation funding, when a representative action for redress measures is funded by a third party, conflicts of interests shall be prevented and funding by third parties that have an economic interest in the bringing or the outcome of the representative action for redress measures shall not divert the representative action away from the protection of the collective interests of consumers.

(2) For the purposes of sub-article (1), in particular:

(a) the decisions of qualified entities in the context of a representative action, including decisions on settlement, shall not be unduly influenced by a third party in a manner that would be detrimental to the collective interests of the consumers concerned by the representative action; and

(b) the representative action shall not be brought against a defendant that is a competitor of the funding provider or against a defendant on which the funding provider is dependent.

(3) The Civil Court, in representative actions for redress measures, shall be empowered to assess compliance with sub-articles

(1) and (2) in cases where any justified doubts arise with respect to such compliance. To that end, qualified entities shall disclose to the Civil Court a general financial overview that lists sources of funds used to support the representative action.

(4) For the purposes of sub-articles (1) and (2), the Civil Court shall be empowered to take appropriate measures, such as requiring the qualified entity to refuse or make changes in respect of the relevant funding and, if necessary, rejecting the legal standing of the qualified entity in a specific representative action. If the legal standing of the qualified entity is rejected in a specific representative action, that rejection shall not affect the rights of the consumers concerned by that representative action.