Public awareness of class actions in the United Kingdom has climbed to its highest level in five years, yet a significant majority of citizens remain sceptical, believing the primary beneficiaries are law firms and litigation funders. This is according to a new report from strategic communications consultancy Portland, shared exclusively with City AM.
Rising Awareness and Motivations
The report reveals that public awareness of class actions has now reached 27 per cent, marking the highest level recorded since 2020. This awareness is notably concentrated among younger demographics, with over half (50 per cent) of those aged 25-34 familiar with the process.
Interest in participating is substantial, with 65 per cent of respondents stating they would sign up to a class action if given the opportunity. For those keen to join, the principal driver is a belief that a company has committed a wrongful or illegal act, a motivation that outweighs the potential for financial compensation.
When asked which sectors they would most support class actions against, over half of respondents ranked healthcare as their number one target. This was followed by the finance and energy sectors.
Scepticism and Calls for Transparency
Despite growing familiarity, the report uncovers deep public scepticism about the outcomes of such legal battles. Nearly 70 per cent of the public believes class actions mostly benefit law firms and litigation funders.
This sentiment is underscored by high-profile cases like Merricks v Mastercard. A claim initially valued at up to £14bn on behalf of 46 million consumers was eventually settled for £200m after nearly a decade in court, with individual payouts estimated at just £45 to £70.
In response, there is a strong public demand for greater openness. Almost two-thirds (65 per cent) agree that class representatives should be required to publicly disclose the identity of their litigation funder to the courts. Furthermore, more than half of the public indicated they would trust a case funded by a law firm over one financed by a third-party litigation funder.
Regulatory Spotlight and Future Reviews
The findings arrive as the litigation funding sector faces increased scrutiny. Earlier this year, a report by the Civil Justice Council recommended a light-touch regulatory framework for the industry.
Separately, the government’s Department for Business and Trade (DBT) is conducting its own review into the use of litigation funding. This comes amid a landscape where the total value of class action cases in the UK had surpassed €155bn (£135bn) by 2024.
Simon Pugh, a partner at Portland, summarised the report's insights: “Shareholders are supportive of legal action against misleading or harmful corporate practices; consumers are more willing to join class actions and are motivated for reasons other than money; and the public believes legal action is an effective way to hold companies accountable for greenwashing.”
