That's a simplistic conclusion. If the legal system is the right answer, but the existing legal system does not perform the function, then it might be important to reform the legal system and not change everything else.
In a better legal system it should be easy, for all defrauded people to somehow make money.
Libertarian and other people have actually studied these issues quite in depth and there are many good proposals. A simply version is that if you are victim of fraud but you don't want to take action, you can sell your claim to somebody else. In this case we have many small claims, one actor can buy them up and then make a collective action lawsuit without everybody else having to care.
In a better legal system it should be easy, for all defrauded people to somehow make money.
Libertarian and other people have actually studied these issues quite in depth and there are many good proposals. A simply version is that if you are victim of fraud but you don't want to take action, you can sell your claim to somebody else. In this case we have many small claims, one actor can buy them up and then make a collective action lawsuit without everybody else having to care.
This would be a far superior system to regulation. I have made arguments to that effect here: https://news.ycombinator.com/item?id=13017446