Q: I am wondering about the viability of an idea I've had for a platform to crowdfund litigation.
The idea is pretty straightforward: It would be a platform that allows for firms or individual lawyers to post meritorious cases in need of funding, once a case is posted investors will be able to browse through them and pledge money to cases they think will yield them a future ROI. The value I see in this is that the plaintiff will assume less risk, it also gives regular people an alternative investment opportunity, and it could help law firms take on bigger cases.
I think the proof of concept exists in litigation finance firms such as Lexshares and Burford Capital.
A: Your idea falls within the realm of litigation finance, a growing field that faces various ethical and legal considerations, including the potential for champerty or maintenance. Transparency and thorough due diligence would be essential in structuring your platform to ensure it complies with the rules on professional conduct and other relevant legal standards. Given the complex regulatory landscape surrounding this field, it would be prudent to seek legal advice tailored to the nuances of your specific business model.
A: This might be better addressed in a in-depth consult. Cases can differ in how they are funded - with various types of costs specific to the nature of the case. Good luck
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