The evolution of class actions in Spain and the role of litigation PR in litigation strategies, by Diana Jennen

‘Communication and reputation management around a case can influence public perception and, in some cases, even the direction of the judicial process’

Class actions are on the rise in several European countries, including Spain, and they are emerging as a key tool for groups of people affected by corporate practices or harmful events. While countries like the United Kingdom and Portugal already have well-established histories of class actions, this legal mechanism is only beginning to gain ground in Spain, presenting interesting challenges and opportunities for law firms. In this article, we explore the evolution of class actions in Spain in comparison to other countries and the value a Litigation PR expert can bring to legal strategies in these types of cases.

The evolution of class actions in Spain

In Spain, the concept of a class action is not new, but its application has been limited compared to other European countries. However, the landscape has changed in recent years. The increase in mass consumer cases, such as scandals involving defective products, corporate abuses, and financial fraud, has prompted the courts to more frequently consider class actions. This growth is also fuelled by greater public awareness of collective rights and legislation that is beginning to adapt to this litigation mode.

One of the main limitations in Spain has been the lack of a specific legal framework for class actions, which has forced lawyers and judges to work within the constraints of the traditional system. However, in 2020, the European Union passed Directive 2020/1828, which sets out a framework for cross-border class actions. This development obliges member countries, including Spain, to adapt their legislation to meet these new standards. By 2023, legal reforms in Spain had started to take their initial steps, indicating a shift towards a more accessible system for this type of litigation.

Comparison with the United Kingdom and Portugal

In the United Kingdom, class actions are common and have primarily evolved in the context of “group litigation orders” (GLOs), where courts can authorise litigation on behalf of a group of claimants. This approach has been effective for cases involving hundreds or even thousands of affected people and is commonly seen in litigation related to defective products, abusive corporate practices, and cases of unfair competition.

In contrast, Portugal has stood out for its “ações populares” system, which allows citizens and groups to file class actions on behalf of a public or common interest. Portugal has also been successful in promoting these cases, enabling affected individuals to seek justice without incurring high legal costs. The main difference with Spain is that in Portugal, legislation for class actions is well-established, providing rapid and effective access to the courts.

Both countries serve as a reference point for Spain, which is in a phase of growth and experimentation with class actions. As Spain modernises its legal system, it is expected that the regulatory framework will facilitate a more proactive approach to filing and resolving class actions.

The importance of litigation PR in class actions

Class actions are often accompanied by high media visibility since the cases often involve large corporations and affect numerous consumers. This is where Litigation PR plays an essential role. Managing communication and reputation surrounding a case can influence public perception and, in some cases, even the direction of the judicial process. Litigation PR allows law firms to work closely with communication experts to develop strategies that protect and project the right image for their clients.

Advantages of a litigation PR expert for legal strategy:

1. Message control: A Litigation PR expert can help lawyers build a coherent message that resonates with the media and the public. This is crucial to avoid misunderstandings or inaccurate representations of the case that could harm clients.
2. Reputation protection: In the context of class actions, clients often face significant media pressure. A Litigation PR specialist works to protect the reputation of those involved, controlling the narrative and mitigating any negative impact the case may have on the public image of the affected company or individual.
3. Generating public support: In many cases, public support can be a determining factor in the direction of the judicial process. A Litigation PR expert can help mobilise this support by highlighting the more human aspects of the case and showing how the company or individual is committed to addressing the claimants’ concerns.
4. Media preparedness: In cases with extensive media coverage, it is essential for lawyers and their clients to be prepared to face the media. Litigation PR ensures that all public messages are aligned with the legal strategy and that the client is adequately prepared to speak publicly if necessary.

Perspective on reputation management in securities litigation

Securities litigation involves class actions and legal proceedings by investors who have suffered losses due to alleged violations in the securities market. In these cases, Litigation PR becomes a crucial tool for managing reputational impact, especially due to the high exposure of companies in capital markets. A communication expert can help lawyers manage investor perceptions and protect the company’s reputation against potential divestments or negative market movements. Additionally, by building a transparent and responsible message, Litigation PR contributes to restoring stakeholders’ trust and, in some cases, positively influences the litigation outcome.

Other aspects of litigation PR

Beyond class actions and securities litigation, Litigation PR applies to various types of litigation that may have significant reputational implications:

1. Commercial and contractual disputes: In commercial conflicts, Litigation PR helps manage the narrative to maintain the trust of clients and partners, preventing damage to the company’s reputation.
2. Corporate responsibility litigation: In social and environmental responsibility situations, such as pollution cases, it is used to project an image of responsibility and ethical commitment on behalf of the company.
3. High-profile criminal litigation: In high-profile criminal cases, Litigation PR is key to protecting the client’s public image, carefully handling the media narrative.
4. Civil rights and discrimination litigation: In this type of litigation, Litigation PR aims to reinforce human rights advocacy and attract public sympathy, often influencing social pressure for a favourable outcome.
5. Intellectual property litigation: Litigation PR in intellectual property disputes can help protect the company’s image and explain the importance of safeguarding its innovations and intangible assets.
6. Restructuring and bankruptcy litigation: During restructuring, Litigation PR is essential for maintaining the trust of investors, creditors, and employees, ensuring the communication of a solid recovery plan.
7. Regulatory and antitrust litigation: In regulatory and antitrust cases, Litigation PR helps dispel any perception of abusive practices, projecting a commitment to fair competition and regulatory compliance.

Conclusion

The landscape of class actions in Spain is evolving, and lawyers must be prepared to take advantage of these litigation opportunities. The incorporation of a Litigation PR expert can be an invaluable asset to safeguard clients’ reputations and strengthen the legal strategy. With the support of a communication specialist, law firms can better manage reputational risks, control the narrative, and increase the chances of success in these complex and high-profile cases. Ultimately, Litigation PR not only protects the client’s image but also complements the legal strategy, achieving a comprehensive approach to resolving class actions and other high-profile litigation.

Diana Jennen 

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