Marks & Spencer, a beloved British high street institution, is facing a fresh wave of attacks, but this time the assailants are not cyber criminals. A left-wing law firm with deep ties to the Labour Party and trade unions is reportedly preparing a major class action lawsuit against the retail giant, seeking compensation for customers following a devastating data breach.
The Cyber Attack and the Legal Aftermath
The trouble began last year when M&S fell victim to a severe cyber attack that disrupted its operations, preventing stores from taking orders and reportedly wiping out almost all of its annual profits. While the company stated it did not compromise customer passwords, the incident caused significant operational chaos.
Now, Thompsons Scotland, a firm closely aligned with the trade union movement, is seeking to launch a collective lawsuit. The claim argues that M&S customers should receive compensation for the "distress and anxiety" caused by the security failure. Critics, including Shadow Business Secretary Andrew Griffith, have labelled this move as a "party-aligned lawfare agenda."
The Rise of US-Style Litigation in the UK
This potential lawsuit is part of a growing trend of American-style class actions in the UK, a system critics say was enabled by legislative changes. Research from the Adam Smith Institute highlights the scale, citing a staggering £135 billion in claims filed in 2024 alone.
Opponents argue that such lawsuits often cripple businesses and clog the courts, with the primary beneficiaries being the law firms and litigation funders, not the ordinary claimants. The concern is that this legal strategy is being actively encouraged within the current political climate.
Political Links and Broader Legal Concerns
The connections between claimant law firms and the Labour Party are under scrutiny. Thompsons' English sister firm has previously employed four current Labour MPs: Warinder Juss, Andy McDonald, Richard Burgon, and Jo Stevens. Furthermore, City Minister Lucy Rigby has also worked for a similar firm.
This has led to accusations that the government, led by a lawyer, is undermining the British legal system. Critics point to a combination of factors: the proposed Employment Rights Bill, rising business rates, and now the perceived support for aggressive class actions against British companies like M&S.
They warn that these actions, coupled with other legal reforms, risk causing lasting damage to the domestic legal framework while the government focuses on international law.
