VW part 2 – Crowd funding litigation

Reforms in the legal sector have paved a potential new road to hell for VW as crowdfunding seeks to allow class action suits to fund litigation claims. It may also allow investors in the UK wishing to put money into commercial litigation to invest through such a vehicle.

Crowd Justice, (the UK’s first crowdfunding platform for litigation launched this year) is set to enable those individuals affected by the VW saga to come together to launch an action against the car giant for its wrongdoing.

Torres v BP and others were the first case to be crowdfunded in the UK.  This human rights case involved a former oil engineer and trade union leader Gilberto Torres. Torres brought a claim for human rights abuses against British multinational oil and gas companies after he was kidnapped and tortured.

The platform, Crowd Justice, uses the reach of technology to bring people together to help fund such cases. The site functions much like the already popular crowdfunding platform Kickstarter with an ‘all-or-nothing’ funding model that empowers communities as much as the person with the legal case.  Legal aid cuts and lack of access to justice is a problem that affects the most vulnerable and in this scenario with over 1 million individuals with a claim against VW it is clear that crowdfunding will prove much relief.

As VW has now admitted that car equipment was rigged in the UK class action specialist firm Slater + Gordon believes that substantial numbers of car owners would be able to make a claim for significant compensation through a class action.

Would you see this as a suitable investment?

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