Portland’s annual report, Reputation and Accountability: Class Actions, ESG and Values-Driven Litigation, uses our in-house polling capabilities to gather insights and long-term trends on public perceptions of class actions, ESG claims and securities litigation.
The report considers how these claims, grouped as values-driven litigation, are being used to hold companies accountable and drive changes in corporate behaviour.
In this report, we gather key insights that paint a picture of two competing realities, one of a distrustful public, whereby two thirds (68%) of the UK public believe class actions primarily make money for law firms and funders rather than claimants, but also one where the public are ore aware and willing to partake in a class action in comparison to previous years.
Class action awareness is slowly rising
UK public awareness of class actions:
Class action awareness has hit 27%, the highest since Portland began collecting data in 2020, coupled with an increased willingness to take part, suggesting the UK public is increasingly viewing class actions as a way to create meaningful change.
The report finds that this is largely motivated by seeking access to justice, with 42% saying they would join a class action if a company had done something wrong or illegal. It is also motivated by sector, with healthcare being both the sector for which the public would support a class action against, and one where they would also be the most likely to forgive after an apology.
The UK public remain sceptical of law firms and funders
Despite increased willingness to take part in class actions, 68% believe that class actions mostly make money for lawyers and funders. Thus, people increasingly believe the system can deliver results yet remain unconvinced it operates primarily in claimants’ interests. Looking at funding in particular, 53% would be more likely to take part in a class action if it was funded by a law firm instead of a litigation funder.
Amongst the heightened discourse on funders, the Civil Justice Council (CJC) has this year proposed a number of recommendations, calling them “light touch regulations”. Portland polled the UK public on some of the key recommendations to come out of the CJC report and found that the public is in favour.
Strong appetite for consumer action against misconduct
The public’s appetite for consumer action spans beyond just legal action. 69% would boycott a company, and 70% would switch utility companies if they felt wronged. Additionally, amongst those who told us they owned shares either directly or through a fund, 68% express a positive view of shareholder activism.
Investment decisions are also a way in which consumers act in response to misconduct. Over half (55%) say they would consider selling their investments from a company found to be disproportionately contributing to climate change. That figure rises further when concerns relate to breaches of governance standards (68%) or infringements of human rights (62%), highlighting the growing role of ethical and compliance considerations in managing investment risk.
–
Reputation and Accountability is compiled by Portland’s Litigation and Disputes practice.
The practice provides specialist advice and strategic communications support to top-tier law firms around the world. We work to reinforce the legal strategy of lawyers undertaking complex or high-profile litigation. We can help ensure that every aspect of your client’s concerns are managed, and every potential advantage explored.
Please contact us at [email protected] for additional Commercial Courts data and analysis, or to learn more about how we can help.
