Global Class Actions: Cross-Border Litigation and Collective Claims

In a standard domestic class action, the plaintiffs, the defendant, and the law are all from the same country. In a global class action, these elements are fractured. For example, a U.S.-listed company like Coupang may face a lawsuit in a New York federal court (EDNY) involving thousands of plaintiffs residing in South Korea.

• Collective Redress Mechanisms: 
• While the U.S. Utilizes the "opt-out" model (where you are in the class unless you leave), many European and Asian jurisdictions are adopting "opt-in" models or "representative actions" led by non-profit entities.
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• The Intermediary Role: 
• In 2026, many global actions are catalyzed by "litigation funding," where third-party financiers provide the capital for cross-border claims in exchange for a portion of the final settlement.

Global class actions typically arise from conduct affecting large groups across multiple jurisdictions. When a multinational corporation makes a decision at its headquarters(such as a failure to implement proper cybersecurity disclosure protocols) that decision impacts users in every country where the company operates.

A major trend in 2026 is the "Foreign Main Proceeding." This occurs when individuals from outside the United States seek to join a U.S. Class action to take advantage of the U.S. Legal system's high damages and robust discovery rules.

• The "Korean Subclass" Example: 
• In the ongoing Coupang litigation, the U.S. Court is currently considering a "Korean Subclass"—a group of victims living in Korea who are suing the U.S. Parent company.
• The Requirement: 
• To be included, these foreign plaintiffs must show that the U.S. Entity exercised "actual control" over the conduct that caused the harm.

When do class actions extend beyond national borders? Under the Morrison v. National Australia Bank standard and its 2026 evolutions, U.S. Securities laws generally apply only to transactions on a U.S. Exchange. 

However, in consumer and privacy law, the "effects test" is often used:

• The Conduct Test: Did the critical illegal acts happen on domestic soil?
• The Effects Test: Did the foreign conduct cause a "substantial and foreseeable" effect within the domestic market?

Courts must resolve complex procedural and substantive conflicts before global claims can proceed. The first battle is almost always Forum Non Conveniens—a defendant’s argument that the case should be heard in a different country where the evidence and witnesses are located. In 2026, with the rise of digital evidence and remote testimony, this defense is becoming harder to maintain.

The "Commonality" requirement of Federal Rule of Civil Procedure 23 becomes exponentially harder to satisfy in a global context.

• Choice of Law Issues: 
• If a court has to apply the laws of 50 different countries to 50 different groups of people, it may find the case "unmanageable" and refuse to certify the class.
• The "Manageability" Formula: 
• A court will look at whether the shared facts are stronger than the differences in local laws.

A company facing a global suit rarely faces it alone. In 2026, we see the rise of "Parallel Enforcement":

• The Civil Front: A class action in the U.S. Seeking billions in damages.
• The Regulatory Front: Fines from agencies like the SEC (USA), GDPR (Europe), or the PIPC (South Korea). If a company admits fault to a government in one country, that admission can be used as a "weapon" by lawyers in another country's class action.

A major risk for plaintiffs is the "Enforcement Gap." Winning a $1 billion judgment in a U.S. Court is meaningless if the company’s money is in a country that doesn't recognize U.S. Court orders.

• Global Settlements: To find "Global Peace," companies now try to reach one big settlement that covers every country at once. This requires incredible coordination between courts in New York, California, and international regulators.

Strategic legal management involves more than just fighting the case; it involves "Forum Engineering."

• Consolidation: 
• Trying to move all global claims into one single court (often called "Multidistrict Litigation" or MDL) to avoid having different judges give different rulings.
• Notice Issues:
•  In 2026, you must tell everyone in the world about the case via social media and apps. If this isn't done perfectly, the final deal might not be "legal" in every country.

The goal of a global class action defense is "Judicial Finality"—making sure the case is closed forever in every country.

• Strategic Settlement: 
• Using "Settlement Classes" to put a cap on how much money the company has to pay before the expensive part of the trial starts.
• Reputational Management: 
• Making sure the legal filings don't destroy the brand's trust with customers in different cultures.
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SJKP LLP provides the clinical clarity needed to navigate International Dispute Resolution and Corporate Risk Management. We move beyond local procedures to audit the "statutory rails" of the global legal system. Managing a cross-border crisis requires a proactive approach: ensuring your case is engineered for a resolution that holds across every border.

To perform a surgical review of a Global Class Action matter, please prepare the following for our initial audit:

• The Incident Scope: A list of all countries where "injured parties" live.
• Jurisdictional Contracts: Your current "Terms of Service" and "Choice of Law" clauses.
• Regulatory Record: All past emails and documents sent to international governments.
• Asset Location Audit: A list of where the company's "reachable" money is held.
• Insurance Inventory: Your global D&O and Cyber insurance limits.