Members of the public who believe class actions make money for lawyers and funders still outnumber those who believe actions will obtain compensation for victims of wrongdoing, a regular opinion survey suggests.
According to the poll, carried out by 'strategic communications' consultancy Portland, knowledge of class actions is rising, with 27% of those surveyed saying they were aware of the tactic, up three points from last year. A 'striking' 68% of those surveyed believe the most frequent outcome is to make money for law firms and litigation funders. Only 54% said the most frequent outcome is to 'hold large companies to account', slightly more than the 52% who said class actions often 'win compensation for those affected'.
Despite this, 65% of respondents said they are willing to take part in class actions. According to the survey responses, the top motivator for joining an action is the belief that a company has done something wrong or illegal.
Support for litigation funding, as the government considers calls for regulation, is 'conditional', the survey report states. 'While understanding of litigation funders is limited initially, once explained, most see their value provided there is transparency, fair fees, and claimants can retain most of the compensation.' The report notes that 53% of respondents said they would be more likely to join a class action funded by a law firm than a third-party funder.
Simon Pugh, head of Portland's litigation and disputes practice, said: 'Portland’s polling reveals that there is a clear public demand for transparency and accountability in both litigation funding and corporate behaviour.'
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