Defrauded investors and victims of cyber fraudsters will be able to form “shock fists” in the courts

The Federation Council has prepared a bill to facilitate the procedure for filing class actions

It will become easier for defrauded consumers, shareholders and injured patients to defend their rights in the courts together. The Federation Council plans to reform the rules for filing class actions. The bill necessary for this has already been developed, Senator Artem Sheikin told MK. Plaintiffs from different regions of the country will be able to unite into a “shock fist” to bring the offender to justice.

The Institute of Class Actions has been operating since 2019, but so far their number relative to the total number of cases considered is no more than 0.003%, noted Artem Sheikin, a member of the Constitutional Committee of the Federation Council. Thus, in 2022, only 770 class actions were considered in the Russian Federation in the framework of civil proceedings.

“One of the reasons, in my opinion, is the lack of a single platform containing information about class action lawsuits filed or planned to be filed,” the senator explained.

As Sheikin emphasized, the current procedure for recognizing a claim as a class action is complex, and the legal requirements for this are very strict.

Moreover, to file a class action lawsuit, the entire group of offended citizens who have the same complaints, for example, against a car dealership, a food delivery service or a clinic, are forced to get together and go to a notary.

The bill is aimed at simplifying the procedure for filing class actions, said Artem Sheikin.

It is expected that a single aggregator resource will be created with information about such applications to the court – both those already filed and those planned to be filed. In addition, it is proposed to amend the Code of Civil Procedure of the Russian Federation and the CAS of the Russian Federation in order to reduce the number of plaintiffs for recognizing a claim as a collective one to 10 people (currently the minimum is 20 people) and to eliminate the requirement for notarial consent of citizens regarding the procedure for incurring legal expenses.

“Simplification of procedures and requirements for filing and consideration of class actions, as well as the creation of a single centralized platform, helps to increase the interest of citizens in protecting their rights,” noted Senator Artem Sheikin, “This eliminates the difficulties associated with procedural requirements and creates convenient conditions for filing and consideration of such claims.

Such changes contribute to greater citizen interest in the process of protecting their rights and increase the efficiency of the class action system. According to Sheikin, class action lawsuits will be an effective measure to protect victims from personal data leaks.

– Experts predict an increase in the volume of leaks of personal data of Russians in 2023 compared to the previous year, and the amount of personal information of citizens in the public domain continues to increase. In this regard, the development of a system of class actions can become the main tool for restoring the rights of victims and providing them with compensation for harm caused by personal data leaks, the senator said.

He clarified that the class action system will also be effective in disputes with housing developers.

– According to statistics, in 91% of cases a peaceful settlement of such disputes is not achieved, and citizens have to file lawsuits in court to receive compensation or satisfy the requirement to eliminate shortcomings. Residents can sue individually or band together to fight unscrupulous construction companies. The use of class actions in this case will also allow shareholders to save on the costs of legal services. In addition, consideration of individual claims would require more of the judge’s time, while consideration of all claims put forward in one claim simplifies the process and reduces the burden on the judicial system as a whole, Sheikin is sure.