Specialised plaintiffs' law firms and legal tech providers increase the risk of mass claims and lawsuits
As a company with a large number of customers, the risk of becoming the target of specialised law firms for plaintiffs or legal tech providers increases. The latter enables customers to assert possible claims against your company with just a few clicks – often in the form of lawsuits.
In addition, the legal framework is changing: The model declaratory action (Musterfeststellungsklage) and the EU representative action (EU Verbandsklage) provide consumer associations with the right to initiate legal action. Therefore, it is to be expected that low-value claims will also be pursued and enforced in the future.
Hence, it is now more important than ever for companies to process customer correspondence quickly, to explore settlement options at an early stage and to steer mass claims in the right direction early on. With such waves of claims and lawsuits, there is a risk that the processing of the vast number of cases will be more of a challenge than the claims themselves.
Digital help for your mass claims defence: Automated Processing Solution for Mass Claims
PwC supports your company in analysing and processing demand letters as well as the defence against mass claims – both in non-cross-border and cross-border proceedings.
The Automated Processing Solution for Mass Claims analyses documents such as letters of claim or lawsuits and retrieves all relevant information. The tool digitally creates files and the respective response documents in a consistently high quality. Due to freely conﬁgurable live dashboards, you get a comprehensive overview of all KPIs that are important for you in real time.
- Customisable user interface
- KPIs in real time, including processing state, progress of claims procedures, risks, costs and any provisions to be made
- Further parameters can be selected, e.g. number of cases, success rates by court, scope of class actions per plaintiff's representative, weekly/monthly number of new demand letters.
The analysis tool
- Screening of incoming documents using Natural Language Processing (NLP) and enhanced Optical Character Recognition (OCR).
- Extraction of individual information such as deadlines and dates for oral negotiations
- Capture individual parameters – including information on claimants and facts as well as legal arguments – using artificial intelligence (AI)
The automation tool
- Creating and maintaining digital files
- Control of deadlines and costs to be incurred
- Coordination of all steps in the process as well as settlement negotiations
- Automatic creation of documents – for example for the statement of defence
You benefit from a state-of-the-art, technologically efﬁcient solution that greatly accelerates tedious processes.
Our highly qualified lawyers have many years of experience in national and cross-border proceedings as well as in the defence of mass actions and model declaratory actions.
You keep the settlement and litigation costs of transactions and legal disputes low and avoid dunning costs.
We support you in making correspondence with affected customers transparent and in handling it efficiently. Thus, ensuring that your customers remain with your company.
We (optionally) check all automatically generated documents for you with the utmost care and continuously monitor the Automated Processing Solution for Mass Claims.
Automation relieves your employees and they therefore can be efﬁciently deployed where they are urgently needed.
The Automated Processing Solution for Mass Claims also supports you ...
... in claims management – in the administration and assertion of claims
... if you want to adapt your terms and conditions for your customers or suppliers
... in the communication of an increase in contributions or fees
... in the case of information obligations imposed by courts
Delivery Models and Prices
*The price includes ongoing server costs and maintenance, initial coordination of the logic and text modules, training of the contact person to be appointed, PwC analysing incoming letters, reviewing their content, preparing replies and making them available for download or optionally for dispatch via the digital lawyer's mailbox and continuous updating of the logic and text modules by experts from PwC Legal. For representation in court matters, the statutory fees provided for this activity are due in accordance with the German Lawyers' Fees Act (RVG).
**Special adjustments are remunerated at €200 per hour. Any costs recovered shall reduce the costs listed above.
Find out more!
For more information on PwC's solution for mass claims, please leave us your business email address here.
What does the EU representative action mean for my business?
The introduction of the EU representative action (EU Verbandsklage) is likely to result in a significantly higher number of lawsuits against companies. This becomes particularly evident, considering that, according to the Roland Legal Report 2020, the "rational disinterest" is currently at an average litigation value of €1,840. Most consumers would not sue for less than this amount. "Qualified institutions" that collectively sue for the claims of many consumers do not have this intrinsic hurdle of "rational disinterest" and are likely to pursue even low-value claims in the single-digit range per consumer.
What consequences can model declaratory actions and mass claims have for my company?
In addition to the stigmatising effect of such proceedings, the considerable (processing) costs associated with mass claims actions is also a risk that should not be underestimated. Therefore, in addition to professional legal defence and often accompanying PR advice, the efficient and cost-saving processing of the numerous procedures is crucial. Our Automated Processing Solution for Mass Claims supports you in this process.
What are the differences between traditional and digital legal advice?
Digital legal advice differs from traditional legal advice only in a faster processing speed and lower costs. You simply upload the enquiries or lawsuits you receive to the PwC Engagement Centre using drag-and-drop, and we do the rest. Moreover, with our dashboards you always have an overview and do not have to request status reports via email.
How will my data be protected?
All data transfer and storage is end-to-end encrypted in accordance with the latest standards. The data is stored on servers in Europe. All data centres are certified according to ISO 27001. Do you need more information? Please use the contact form.
From which number of cases are my issues eligible for the Automated Processing Solution?
For simpler cases, such as pre-litigation demand letters, we achieve considerable efficiency gains and quality improvements from as few as 50 cases compared to conventional, manual processing. The more cases, the greater the efficiency gain and the greater the precision with which the Automated Processing Solution for Mass Claims can work.
How much do I actually save in costs compared to manual work?
We pass on a large part of the efficiency gain to our clients. We would be happy to discuss the specific application in your company.
What is the error rate of the Automated Processing Solution for Mass Claims or how likely is it that incorrect arguments will be processed in my letter?
Rule-based processing with the Automated Processing Solution for Mass Claims eliminates carelessness or "copy-paste" errors. This significantly increases reliability compared to conventional manual processing. Additionally, PwC Legal's lawyers optionally check all drafts before they are sent out.
How do I know if my circumstances are a use case for the Automated Processing Solution for Mass Claims?
Due to the broad scope of application of the Automated Processing Solution for Mass Claims, even beyond litigation, there is a high probability that the tool can also be used in the scenario you have in mind. We would be happy to discuss with you whether the situation in your company is suitable for the use of the Automated Processing Solution for Mass Claims.