3 min read
Helping Plaintiffs Gain Access to Justice through Crowdfunding
The worst-case scenario. Imagine you were badly injured in an accident that left you paralyzed, against a Fortune 500 company. The medical bills continue to skyrocket and the accident has left you unable to work. You have no one else to depend on for income. You had your case evaluated by an attorney and you are fairly certain that your damages are well over $700,000, potentially upwards of a few million.
Yet there’s still one additional problem: your attorney has told you that your case could cost you at least $200,000 in legal fees, not including additional legal expenses. Your attorney won’t work on a contingency basis, meaning they aren’t going to front the costs, and you can’t take out a loan because you don’t have enough leverage. What can you do?
The defendants have funds to out “lawyer” you. Seeking out loans or searching for a law firm to take your case on a contingency fee or as a pro bono case is unlikely. At first glance, you would appear to be out of luck.
However – there is an alternative. You have the opportunity to finance the litigation and your lawsuit through crowdfunding.
Crowdfunding litigation (or litigation financing/funding) allows investors the ability to invest in a legal cause of action. Like institutional-grade assets, investors are able to invest in lawsuits with the potential for a rate of return on the investment.
The process is actually similar to hotel crowdfunding investments. If a plaintiff does not have enough capital to pursue a case, that plaintiff can reach out to investors. Those investors can fund portions of the total amount needed. In return, the investor receives a portion of the judgment based on the total judgment award.
From the investor’s view, crowdfunding opens the opportunity to invest in justice — giving the plaintiff their “day in court” that otherwise would have gone unfulfilled. Sharing in the risk of judgment means that the investor shares in a portion of the total judgment award. Investors can feel empowered with the ability to promote access to justice.
Of course, litigation investments carry risk as do any other investment. As an investor, it’s important to know each case is properly vetted to ensure that only meritorious claims are pursued. Investors should familiarize themselves with the review process of each lawsuit to ensure that not only are invested funds put towards a good cause, but also that returns to increase the likelihood of an investment return.
At EquityRoots we go above and beyond for our clients to ensure our vetting process yields worthy claims. For clients, EquityRoots provides lawsuit and litigation financing for legal expense assistance. For investors, EquityRoots ensures that we have properly vetted each legal case, just as we do with any hotel crowdfunding investment opportunities we offer.
For more information about financing your lawsuit or investing in a lawsuit visit us at http://signup.equityroots.com.