Crowdfund your lawsuit

Last month, I wrote about LexShares, a platform that allows investors to contribute funds to certain lawsuits and earn a return on their investment if the plaintiff is successful.

As it turns out, LexShares isn’t the only crowdfunded lawsuit website to crop up recently — Funded Justice, “a crowdfunding community for anyone with a legal issue that needs money to hire an attorney,” is just beginning to build a following.

The site lists profiles for just three open cases right now, including a landlord-tenant issue and a guardian abuse case. The plaintiffs are seeking between $1,000 and $7,000, compared to the $100,000 to $1 million range that LexShares co-founder and CEO Jay Greenberg predicted for his platform.

But unlike LexShares, Funded Justice is not an investment platform, just a way to contribute to worthy cases. For some cases on the site, users are given the choice of donating money to the project or loaning money that the plaintiff will later repay.

It remains to be seen whether Funded Justice will grow as a method for would-be plaintiffs to afford to hire an attorney. Founder Michael Helfand told ABA Journal earlier this month that he hopes the site will take off as it becomes more well-known, especially for those who need just a small sum to pursue their case.

“If you’re short on money … you have very limited realistic good options,” Helfand said.

About Lauren Kirkwood

Lauren Kirkwood covers the business of law beat at The Daily Record.

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