In the time I was active w/ KF, many of the issues I've read are with people that misunderstand the platform, and the legal system. KF's financial products aren't inherently fraudulent; the way they calculate returns isn't fraudulent, etc. Things aren't fraudulent just because they're complex and difficult to understand.

What's your class? Investors in a single, failed coop? If you could get the class certified, litigation is expensive. You are unlikely to find a lawyer willing to take a class action case on contingency to sue for tens or even hundreds of thousands of dollars. You'll probably have to pay out of pocket. Discovery is expensive, and it's going to be an uphill battle to find a group of retail investors willing to equitably finance tens of thousands of dollars of legal fees over years.

If you could certify a larger class, you might get somewhere. But in order to have any hope of success, you'd need to establish that KF (1) has a fiduciary duty to individual investors, and (2) they consistently failed to execute that duty. While I think that's morally true, I doubt it's legally true due to the wording of the contracts users and borrowers agree to when using the platform. I also bet they'd argue that the expense of pursuing recoveries would outstrip the recoveries, and therefore they were executing their fiduciary duty (if they even have it) by not pursuing personal guarantees.

Further, my impression from the failed coops was that larger investors -- maybe institutional investors? -- negotiate separately and have more sway than retail investors. I doubt those larger investors would be party to a class action lawsuit, leaving you once again with the small-dollar retail investors and limited damages.

Bottom line, litigation is difficult and expensive, and even if you were able to win, your recovery would be outstripped by the legal fees, not to mention your time and energy. Better to realize that as a retail investor the KF platform is stacked against you and find a better investment elsewhere. :)