Die Gruppenklage im Kapitalmarktrecht

German procedural law functions on the fundamental principle of the two-party-process, which is embedded in the ZPO (German Code of Civil Procedure). However, on the capital market in particular, one infringement often causes damages to numerous Individuals. As a result of the low damages, an individual lawsuit is not a worthwhile option. By not allowing for the consequent pooling of claims, the Capital Market Investors’ Model Proceeding Act fails to solve the problem of this legislative gap. This paper demonstrates each of the shortcomings of the Act and subsequently develops the idea of a class action. This legal model is not only an unfamiliar concept in German law, it is also burdened with prejudices resulting from the blackmail potential in U.S. securities class action lawsuits. In the correct Arrangement, however, this model infringes neither the rights of the defendant nor those of the claimant and therefore offers an effective method for the pooling of claims to regulate mass damages.