The German Bundestag, or Federal Parliament, passed a reform of the Capital Markets Model Case Act (KapMuG) on June 13, 2024, and Germany’s Federal Council (Bundesrat) passed it on July 5, 2024. The reform is expected to take effect before the previous version expires on August 31, 2024. In the following guest post, Lorena Kern and Katja S. Bullemer-Wülfert of the DRRT law firm take a look at the reformed KapMuG and consider the possible implication of the reformed Act’s new provisions. A version of this article previously was published as a DRRT law firm client alert. I would like to thank Lorena and Katja for allowing me to publish their article on this site. I welcome guest post submissions from responsible authors on topics of interest to this site’s readers. Please contact me directly if you would like to submit a guest post. Here is Lorena and Katja’s article.Continue Reading Guest Post: “Class Actions” in Germany – KapMuG 2.0
In a milestone in the development of collective investor actions in Germany, a plaintiff in a proceeding against Hypo Real Estate Holding and arising out of the global financial crisis had reached an agreement to settle the action for €190 million. The case against Hypo Real Estate Holding was brought under the German Capital Markets Model Case Act, known as KapMuG. As discussed below, this settlement has very important implications for the development of collective investor actions in Germany, and, indeed, worldwide. A copy of the plaintiff law firm’s June 1, 2022 press release describing the settlement can be found