In a decision that will help shape the boundaries of collective redress in Germany, the country's highest civil court has dismissed a claim brought against a financial institution under the Model Declaratory Action procedure. This procedure was introduced in November 2018 in the aftermath of the diesel NOx revelations in Germany and allows an action to be brought against a business by a so-called “qualified entity” on behalf of a group of at least 50 consumers. In the present case, the court held that the plaintiff could not act as a qualified entity because it was not predominantly active in the field of advising and informing consumers.
For more information see this article by Tilmann Hertel on our global class actions hub.
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