In modern society we almost systematically use the legal system to settle an important dispute when the law has been broken or when we feel that we are entitled to some sort of recognition of wrongdoing because the other party is resisting to make it right. Hence, there is a substantial rise of problem resolution through courts and both plaintiffs and defendants have to face the high costs and risks of litigation. The nature of lawsuits may vary in different ways: from civil to commercial litigation.
Third party funding was created to assist with the fees and costs that litigation incurs. Professional third-party funders usually take on the most meritorious commercial disputes in which the prospects of the case proceeds are relatively high. For example, in Australia, during the Centro shareholder class action, $30 million out of a $200 million settlement went on legal fees and then the litigation funders took about another 40%.
Unlike third-party funders, Invest4Justice is an online public platform that aims at connecting litigants to potential investors, meaning that any visitor can become an investor and the returns potentially generated in the future are sent to them and not to Invest4Justice. Besides, our platform was founded to help close the gap between the ones who cannot afford expensive legal costs and the ones who can. We strive to secure funding to anyone who presents a meritorious claim even though the expected compensation is low.
Today, the world has shifted so dramatically to make litigations expensive and overwhelming. That’s a crisis that can be cured if we allow litigation crowdfunding to flourish. It is not always easy to realize how important it is to have access to justice if one has never had to bring a case to court. Peer-to-peer litigation crowdfunding was invented because of a serious need to improve access to justice for everyone.
What is the Future of Litigation Crowdfunding?
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