The rise of predatory class action law suits and a lack of transparency around litigation funding are putting off investors, says Seema Kennedy

Last week the courts rejected a £500m class action brought on behalf of 36m British consumers against Apple and Amazon. The case – which hinged on whether the two companies were illegally colluding to keep product prices high – was not dismissed on the merits of the case. Rather, it failed to get off the ground at the first hurdle because the judge had concerns about the person bringing the claim and whether they had the ability to act in the best interests of the class.

Sound familiar? Last year in a similar claim against British Airways and Easyjet, a yoga instructor tried and failed to bring a £300m class action claim against the airlines on behalf of consumers for delayed flights, which stood to net her and her boss (who was bankrolling the claim) £70m if successful. The catch? Consumers would have seen 25 per cent of their money flow to........

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