Grupeer investors are looking to raise up to €275,000 (£244,939) to fund legal action against the European peer-to-peer lender.
An action group has been established, named GRP-5612 after Grupeer’s last loan, and is instructing lawyers following concerns over the platform’s decision to suspend operations and block withdrawals.
Latvia-based Grupeer has blamed a suspension in activity on the coronavirus pandemic and state of emergency across Europe, but investors say this contradicts posts on its own website that claim P2P lending is less volatile and not as vulnerable to the outbreak.
Rather than relying on Grupeer’s insistence that it will get back on track in one to two years, the action group intends to instruct Latvian law firm Ellex Klavins to recover funds.
It hopes to recoup at least €12m.
“We believe that there is a real chance of recovering at least some of the money invested in Grupeer,” the group of investors from across Europe said.
“However, for individual investors it would be costly and time-consuming to file police reports and submit claims in Latvia and to pursue all the way to recovery.
“The best chance would be to hire a local law firm to handle the case on behalf of all investors.
“An association has been formed in order to collect payments for the law firm and other related expenses and to create a framework for investors to submit their claims.”
The cost has been set at 1.8 per cent of an investor’s claim with a minimum of €25.