Empowering Individuals, Diversifying Investments, and Managing Challenges for a Fairer Legal System”

Group litigation is when individuals with similar claims, arising from similar circumstances and usually against the same defendant, come together to proceed as a single group. The major benefit of group litigation is the pooling of skills and resources to acquire greater investigative and negotiating powers, thus creating a greater chance for success. In the 21st Century, with strong means of communication and lead generation, this form of litigation is becoming increasingly prevalent and has become a means by which seemingly powerless victims can win compensation from powerful entities, whilst funders enjoy lucrative returns.

What is it?

This type of litigation differs from a ‘Class Action Lawsuit’, where claimants ultimately walk away with little compensation. The UK is developing a different sort of group claim – a Group Litigation Order (GLO) – where similar circumstances allow lawyers to issue all the claims together and conduct collective case management, thus reducing the cost and increasing potential compensation.

The reduction of costs for the individual claimant is important as it makes the justice system more accessible to the public. Often, the cost of bringing forward a claim is disproportionate to the injustice and therefore becomes prohibitive for the individual. However, by recharacterising it into a group claim, economies of scale make it more cost effective and worthwhile for the individual, showing that strength in numbers can allow for and encourage a fairer justice system that negates the equation of power and money to some degree.

Why are people joining?

There are many benefits to group litigation for both claimants and funders.

By pooling resources together, claimants have a greater access to quality representation which they would not have been able to afford in isolation. Moreover, leveraging collective resources allows for greater investigative powers, such as finding expert witnesses, which enhances the strength and credibility of the case. Naturally, this incurs a greater success rate and encourages more claimants to the group.

Funders are also becoming increasingly aware of the market’s growth and the opportunities it provides.

One benefit of funding group litigation is diversified investment. By spreading the risk across a multitude of different types of litigation, the risk involved is mitigated by potentially high returns from other cases.

Furthermore, litigation does not correlate with traditional financial markets, making it counter cyclical to some degree.

There is also an opportunity for funders to improve their reputation by providing access to and supporting justice for the mass market. This can be appealing to investors and boosts the reputational value of the business.

Challenges and Risks

For the claimant, there are several potential downsides throughout the process. With large cases, organisation and management can prove difficult as constant consensus is needed from all claimants to advance the case. Accordingly, it is vital that competent and effective book builders are employed who can manage the case with diligence.

For funders, it is important that they carry out proper due diligence for each case to ascertain its potential success rate. Furthermore, legal proceedings are inherently uncertain, so funding such cases carries a strong risk as the process can collapse unexpectedly and without warning – although this risk is mitigated by the potentially large returns.

For both the funder and the claimant it is important that expectations are managed accordingly. Litigation is complicated and can prove a lengthy and exhaustive process. It is important that all parties involved understand that there is often a tremendous amount of risk that must be regarded before lucrative returns can be considered.Top of Form


In conclusion, group litigation empowers individuals against powerful entities, fostering a fair legal system. Its 21st-century surge reflects increased access to justice for seemingly powerless victims. The benefits extend to funders with diversified investment opportunities and an enhanced market reputation. However, challenges persist. Effective case management is crucial for claimants, dealing with intricacies in organization. Funders face uncertainties, necessitating thorough due diligence. Realistic expectations are vital, acknowledging the complexity of the litigation process. Despite challenges, group litigation remains a potent tool reshaping power dynamics and advancing a more accessible and equitable justice system.