Tag #Corporate Abuse

What are the main obstacles preventing the implementation of class-action lawsuits in Spain, and what are the consequences of this delay?

The lack of class-action lawsuits in Spain stems from a two-year delay in transposing the 2020 EU Directive and the subsequent withdrawal of the relevant bill from Congress. This legal vacuum forces individuals to pursue costly individual claims, overwhelming the judicial system and costing the state significantly more than efficiently resolving disputes through collective actions, as seen in the 900,000 individual banking abuse lawsuits. This contrasts sharply with the US system, where class-action lawsuits are common and deter corporate misconduct through penalties.