UK Public Voices Opinions on Litigation Funding
A recent report has unveiled how the UK public feels about litigation funding and third-party involvement in legal cases.
The report, titled Reputation and Accountability: Class Actions, ESG and Values-Driven Litigation, was published by Portland Communications on November 27th. It surveyed 2,000 individuals and 540 business leaders in the UK to glean insights into their views on class actions, ESG-related claims, and securities litigation, collectively known as ‘values-driven litigation’ due to their ethical and moral motivations. The report explores how these types of legal actions are being used to hold companies accountable and push them to raise their corporate standards.
According to the report, 81% of respondents believe that class actions primarily benefit litigation funders and lawyers, despite growing acceptance of the role of litigation funders in the UK. This sentiment aligns with remarks made by UK Competition Appeal Tribunal chairman Andrew Lenon KC, who cautioned against collective proceedings turning into a profit opportunity for funders and lawyers.
Interestingly, public comfort with the idea of third-party funders supporting class actions and receiving a portion of the damages has increased. Last year, 66% of respondents felt all compensation should go to those affected, but this figure dropped to 46% in the latest report. Most respondents (25%) consider a funder receiving double the investment to be fair, while 15% now believe that 10 times the investment is an acceptable fee, up from 6% the previous year.
Awareness of class actions has also increased, with 24% of respondents reporting ‘high levels’ of awareness in 2024, up from 19% in the previous year. The survey found that 23% of respondents had participated in a class action, with 65% expressing interest in joining one in the future.
The report also touched on ESG risks, noting that 77% of business leaders believe that directors should address climate risks within their companies. Additionally, 66% of respondents support legal action to hold governments accountable for failing to meet climate responsibilities, with 72% backing litigation against companies accused of human rights violations in their supply chains.
Regarding securities litigation, 53% of participants view these claims as an effective method for holding companies accountable for not addressing climate risks. Furthermore, 64% of the UK public believe that shareholders are justified in suing companies for disseminating misleading information, and half of respondents stated that increased shareholder actions would improve governance standards.
The report underscores the evolving perceptions of litigation funding and values-driven legal actions within the UK public and business communities.
