Collective Redress in Crowdfunding

Abstract

This chapter explores the use of class action procedures to resolve crowdfunding-related disputes. In collective proceedings, associations or foundations will typically act as claimants, representing a constituency of investors that allegedly suffered the same type of harm, and taking decisions with (legal) consequences for the individual members of this groups. In principle, this type of dispute seems to be suitable for class action schemes, e.g. aggregating the claims of a multitude of investors against a project owner, or a service provider. Yet, the availability of this sort of procedures varies largely among European legal systems. The chapter discusses class actions as a method for the resolution of crowdfunding-related disputes, also in light of the new EU Directive on collective redress.