Legal Funding Journal is dedicated to informing and engaging the global legal funding community through daily news, insight, analysis and original content.

By Harry Moran | April 3, 2025

As funders and law firms await the outcome of the Civil Justice Council’s (CJC) review of litigation funding later this summer, industry experts are opining not only on the potential direction any future regulation could take, but what body would be in charge of this new oversight function.

In an insights post from Shepherd and Wedderburn, Ben Pilbrow looks ahead to the CJC review of litigation funding and poses the question that if some form of regulation is inevitable, who will act as the regulator for these new rules? Drawing upon two previous reports that reviewed the funding of litigation, Pilbrow points out that historically there have been two main bodies identified as the likely venues for regulation of third-party funding: the courts or the Financial Conduct Authority (FCA).

Analysing the comparative pros and cons of these institutions as prospective regulators, Pilbrow highlights that each one has two core contrasting qualities. The courts have the requisite expertise and connection to litigation funding yet lacks ‘material inquisitive powers’. On the other hand, the FCA does not have the aforementioned ‘inherent connection to the disputes ecosystem’, but benefits from being an established regulator ‘with considerable enforcement powers’.

Exploring options outside of these two more obvious candidates, Pilbrow suggests that utilising one of the existing legal regulators may be viable due to the fact they are all ‘largely staffed by lawyers but have regulatory powers.’ However, Pilbrow notes that these legal regulators may have common flaw that would stop them taking on this new role. That flaw being the comparatively small size of these organisations, with the Solicitors Regulation Authority (SRA) still only boasting 750 employees despite being the largest of these legal regulators.

Concluding his analysis, Pilbrow suggests unless the government opts for an expanded system of self-regulation under an industry body such as the Association of Litigation Funders, the most likely outcome is for the FCA’s remit to be expanded to include the regulation of litigation funding.

The full article from Ben Pilbrow can be read on Shepherd and Wedderbun’s website.

Commercial Deals

By Harry Moran | April 3, 2025

In an announcement posted on the ASX, Omni Bridgeway announced that it had completed the final payment for the acquisition of the Omni Bridgeway Europe (OBE) business that took place in 2019. The litigation funder confirmed that 5,213,450 fully paid ordinary shares had been ‘issued in satisfaction of the fifth and final tranche of variable deferred consideration’ to complete the acquisition.

Highlighting the progress of the business over the past six years, Omni Bridgeway said that the European business ‘has been successfully integrated into the global operations of the group, creating the most diversified legal asset management platform globally, covering all relevant civil and common law jurisdictions and all relevant areas of law.’

The announcement also revealed that OBE has ‘achieved the defined five-year KPIs in full’, whilst the management team ‘has been fully retained.’

Commercial Deals

By Harry Moran | April 3, 2025

With the global economy and financial markets in a current state of uncertainty, the stability of litigation funding as an uncorrelated asset class for investors is attracting wider attention than ever.

In an interview with Bloomberg TV, Christopher Bogart, CEO of Burford Capital discussed the current state of the litigation finance market, explained why third-party funding is attractive to clients and investors alike, and addressed the common critiques that are levelled at the industry.

On the enduring appeal of litigation funding to corporate clients, Bogart said that for many CEOs and CFOs the truth is that their companies are “spending too much money today on legal fees”. He went on to say that money spent by companies on legal fees is “not doing anything that advances their core undertaking”, and as a result, “the ability to offload that to somebody like us [Burford] is very valuable.”

When asked about why the litigation finance market is thriving during the global economic uncertainty, Bogart highlighted that all of Burford’s “cash flows come entirely out of the outcome of litigation results and those are independent of what’s happening in the market, independent of what’s happening in the broader economy.” In terms of the future of litigation funding and the potential for the market to continue to grow, Bogart pointed out that between legal fees and litigation judgments there is a “multi-trillion dollar a year global market” and that whilst the industry is already “booming”, there is still “a lot of room to run here” for litigation funders.

In response to a question on the criticisms of litigation funding and the suggestion that funders may look to prolong the duration of cases, Bogart pointed out that Burford is just like any other investment firm that is “looking for high quality assets that are going to produce a reasonable return in a short period of time.” Bogart emphatically rejected what he described as “false concerns” by opponents of third-party funding, and stated plainly: “we’re absolutely not in the business of being interested in prolonging duration or in bringing forward things that are not ultimately going to yield a good result for our shareholders”.

The full interview can be found on Burford Capital’s website.

Commercial

By Harry Moran | April 3, 2025

The benefits of litigation funding in providing the necessary financial resources to individuals to seek justice are clear, however, there are still those in the legal industry who are concerned that the third-party funding model is incentivising the wrong sort of behaviour from law firms.

An article in Legal Futures provides an overview of comments made by Jennifer Ackers, deputy executive director of investigations and enforcement for the Solicitors Regulation Authority (SRA), at a recent industry conference. At the event, Ackers raised a variety of concerns that the SRA has around the relationship between litigation funders and law firms in the housing sector.

Ackers suggested that whilst third-party funding has opened more opportunities for firms to pursue housing disrepair claims, the SRA has also found “unstable business models that are really being driven through that third-party funding arrangements”. Ackers went on to highlight “inappropriate relationships” between funders, ATE insurers and experts; describing how the flow of money between these parties is “driving poor behaviours and wrong incentives for firms and solicitors.”

Ackers provided more examples of concerning behaviour in the consumer claims sector, arguing that in situations where clients are signing funding agreements directly with funders, the SRA “would challenge whether that can ever be in clients’ best interests.” On a broader scale, Ackers suggested that the SRA’s review found that there were law firms who have been “prioritising their commercial interests when taking on that litigation funding without giving sufficient thought to clients’ interests”.

Ackers’ comments can be read in further detail in the full Legal Futures article.

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Community Spotlights

Community Spotlight: Garrett Ordower, Partner, Scale LLP

By John Freund | April 3, 2025

Garrett is a seasoned attorney and head of Scale LLP's Litigation Finance Team. With extensive experience across both commercial and consumer litigation finance sectors, Garrett brings a uniquely comprehensive perspective to the field. He has developed specialized expertise in sourcing, evaluating, structuring, and managing diverse funding arrangements, from single-case investments to complex law firm portfolio facilities. Throughout his career, Garrett has successfully navigated intricate and often contentious workouts involving various stakeholders, including claimholders, attorneys, funders, and medical providers.

Beyond traditional litigation finance, Garrett has emerged as a thought leader in legal innovation. He advises on sophisticated structuring and ethics issues for startups in litigation finance, LegalTech, JusticeTech, and advises on a broad range of ethics issues including emerging issues relating to the use of artificial intelligence to deliver legal services to both consumers and businesses. His expertise extends to alternative business structures and two-company models that enable innovative legal service delivery while maintaining ethical compliance. Garrett is licensed to practice in New York, Illinois, and Arizona.

Garrett began his career as a litigator at Wachtell, Lipton, Rosen & Katz, engaging in significant litigation and white collar matters. He then transitioned to one of the pioneering commercial litigation funders, Lake Whillans Litigation Finance, as a managing director. At Lake Whillans, Garrett participated in tens of millions in litigation finance deals including asset purchases, law firm lending portfolios, and claimholder funding. His articles on litigation finance topics have been widely published, and he was recognized as one of Lawdragon's Global 100 Leaders in Litigation Finance.

Garrett then joined Mighty Group, Inc., as its General Counsel following the company's Series B raise. He handled all legal aspects of Mighty's significant consumer litigation finance portfolio, which included investments in medical receivables, pre-settlement advances, and law firm lending. Garrett also played a pivotal role in helping Mighty create an innovative tech-forward competitor to existing personal injury law firms.

Since joining Scale, Garrett has focused his practice on helping innovative companies in the legal and litigation finance spaces. As head of the Litigation Finance Team, Garrett has helped litigation finance companies with fund structures, commercial and consumer transactions, and ethics and regulatory advice. Garrett has also advised a wide variety of LegalTech and JusticeTech companies on structuring their businesses in order to achieve their goals in an ethical and compliant manner, including doing so through the use of AI.

Prior to practicing, Garrett graduated from the University of Chicago Law School where he was Editor-in-Chief of the University of Chicago Law Review, and clerked on the Northern District of Illinois and the Second Circuit Court of Appeals. Garrett maintains an active pro bono practice and recently secured the vacatur of his client's manslaughter conviction. Prior to law school, Garrett worked as a newspaper reporter and investigative journalist.

Company Name and Description: Scale LLP, a full-service, national law firm that rethinks the traditional law firm model. Scale provides a tech-forward, distributed platform that reduces overhead and increases efficiency to offer the best legal talent at a competitive price-point.

Company Website: scalefirm.com

Year Founded: 2017

Headquarters: San Francisco, CA

Area of Focus: Scale LLP's Litigation Finance Team delivers comprehensive solutions across the entire litigation funding ecosystem. We provide specialized counsel to litigation finance companies, claimholders, law firms, and investors, drawing on our team's firsthand experience having worked on all sides of litigation finance transactions. Our services encompass fund formation, deal structuring, portfolio construction, regulatory compliance, and workout solutions and litigation related to distressed assets.

Our practice uniquely bridges both commercial and consumer litigation finance sectors, allowing us to develop innovative hybrid approaches that maximize return while managing risk appropriately. We combine deep litigation experience with sophisticated financial structuring capabilities to deliver practical advice on complex transactions ranging from single-case investments to multi-jurisdictional portfolio facilities.

Beyond traditional litigation finance, we lead the field in advising LegalTech and JusticeTech companies on cutting-edge business models that navigate regulatory complexity while promoting greater access to justice. We provide guidance on artificial intelligence implementation in legal services, addressing both the transformative potential and ethical challenges presented by these technologies. Our attorneys have pioneered compliant structures for alternative business arrangements in both traditional and emerging jurisdictions, helping clients develop sustainable competitive advantages through regulatory innovation.

Member Quote: "I work at the intersection of law, finance, and technology because I believe these convergent forces can transform our legal system. By leveraging litigation finance, legal innovation, and AI tools thoughtfully, we can build a more equitable legal landscape where outcomes are determined by merits rather than resources. Every day, I work with visionaries who are dismantling outdated structures and creating something more efficient, accessible, and just. This evolution not only enhances access to justice but also creates compelling investment opportunities in a market ripe for transformation."

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Community Spotlights

Community Spotlight: Scott Davis, Partner, Klarquist

By John Freund | April 2, 2025

Scott focuses on intellectual property litigation, representing clients in courts throughout the U.S. He has had great success both obtaining relief for intellectual property owners and defending suits in a wide range of technical fields in cases involving patent, trade secret, unfair competition, employment agreement, copyright, DMCA, trademark, trade dress, product configuration, and false advertising claims.

Scott has litigated cases involving chemical, mechanical, medical device, internet, software, encryption, computer, clean energy, automotive, apparel, food, agricultural, and pharmaceutical technologies. Representing some of the largest companies in the world as well as smaller businesses and start-ups, he has succeeded for clients such as Adobe, British Airways, Columbia River Knife & Tool, Capsugel, Costco, Danner, DexCom, Intuit, Microsoft, Nightforce, Phibro Animal Health Corporation, SAP, SunModo, and Yelp.

Describing his past success and approach with the Klarquist litigation team, IAM Patent 1000 recently lauded Scott’s ability to assess the best strategies and his talent for understanding and simplifying complex technology, and noted that Scott will “always put your objectives first and act like a part of your team.”

Company Name and Description: Klarquist is a full-service intellectual property (IP) law firm with services including IP counseling, patents, trademarks, copyrights, litigation, and post-grant USPTO proceedings. Because we focus our practice exclusively on intellectual property, our prosecution professionals leverage a thorough understanding of our clients’ cutting-edge technology to an extent not seen in general practice firms. Our technical expertise covers biotechnology, physics and optics, chemistry, electrical and mechanical engineering, software and computer science, plants, and semiconductors.

Klarquist is one of the oldest and largest intellectual property law firms in the Pacific Northwest. For more than 80 years, the firm has provided intellectual property legal services to innovators of all stripes and sizes. The firm has over 60 attorneys and patent agents, more than 90% of whom hold technical degrees and many with doctorates in their respective fields. Klarquist professionals are adept at handling all phases of intellectual property matters, from procurement to transfer to litigation of disputes and post-grant review proceedings. Our roster of clients includes some of the most innovative companies and institutions in the world, from Amazon and Microsoft to the U.S. Government, which chooses Klarquist to procure its patents more than any other firm in the nation. As a full-service intellectual property boutique, Klarquist is uniquely equipped to handle any matter, for any innovator, in virtually every area of modern technology.

Website: www.klarquist.com

Year Founded: 1941

Headquarters: Portland, Oregon

Areas of Interest: Dispute resolution, litigation, and patent post grant proceedings.

Member Quote: "Litigation funding provides a key to unlock access to civil justice."

Case Developments Commercial

By Harry Moran | April 2, 2025

A complex Australian class action that emerged through the consolidation of two separate group proceedings has reached a successful conclusion, with the court approving a large settlement and thereby marking a significant win for the litigation funder who backed the case.

A post on LinkedIn from Balance Legal Capital highlighted the approval of the settlement in the Allianz class action, with the Supreme Court of Victoria approving the A$170 million sum to bring the group proceedings to a close. The class action, which Balance Legal Capital funded, was brought on behalf of over 200,000 Australian customers who purchased a vehicle and were then sold Allianz or Allianz Life “add-on” insurance products by the dealership, alleging that the insurers engaged in misleading or deceptive conduct.

Johnson Winter Slattery (JWS) and Maurice Blackburn Lawyers jointly represented the plaintiffs in the class action. In 2021, the Court had ordered the consolidation of this group proceeding with a similar class action against Allianz, resulting in two representative plaintiffs: Ms Tracy-Ann Fuller and Mr Wilkinson.

The judgment approving the proposed settlement was made today, with the court approving a $30,000 payment to the two plaintiffs. The court also maintained the Group Costs Order (GCO) of 25% of the settlement, with a $42.5 million payment set to be divided between JWS and Maurice Blackburn, with a further sum of up to $4.72 million allocated to Maurice Blackburn for the administering of the settlement distribution scheme.

On the costs incurred by the law firms, Justice Matthews wrote that they were, “satisfied that the costs are reasonable and proportionate to the issues in dispute and the overall amount in dispute.” The judge went on to highlight that the class action “was a very large and complex proceeding and it is unsurprising that the costs are substantial.”

The full judgment and settlement approval orders can be read here. More information about the case can be found on the Allianz Class Action website.

Case Developments Commercial

By Harry Moran | April 2, 2025

The dispute between Walter Merricks and Innsworth Capital in the Mastercard claim has been one of the most visible examples of a rift between a class representative and litigation funder.

An article in The Law Society Gazette provides an update on the ongoing fallout from the settlement in the Mastercard litigation, as the acting president of the Competition Appeal Tribunal (CAT) has described the funder’s legal costs of over £52,000 as “wholly disproportionate and unreasonable”. These comments came in a ruling on costs that Mr Justice Roth had ordered the class representative to pay, relating to the funder’s legal costs for responding to Mr Merricks’ application for a court order (‘Documents Application) that would have prevented the funder from using confidential documents in its intervention.

In his assessment of Innsworth’s submissions on costs, the judge accepted that the funder’s need to oppose the Documents Application was “critical to its ability to participate effectively in opposing the CSAO Application” and went on to say that he had “no criticism of the time spent by the solicitors.” However, Justice Roth did highlight the decision to instruct “both leading and junior counsel to advise on the response” and the fact that in this matter, “Akin Gump is charging at well over double, and in the case of the Grade B solicitor almost three times, the London 1 Guideline Rates.”

The ruling goes on to note that whilst Innsworth “may choose to agree with its solicitors to pay a much higher rate of fees”, it does not automatically follow “that costs incurred at those rates are recoverable from the other side”. Determining the final costs, Justice Roth settled on a reduction of the solicitors’ fees down from £26,355.50 to £12,000, and similarly reduced the counsel fees to £10,000, which he still described as “generous”. As a result, the final sum for Innsworth’s costs was set at £22,000.

The full ruling from Mr Justice Roth can be read here.

Case Developments Commercial

By Harry Moran | April 2, 2025

A class action brought in the Federal Court of Australia has reached a resolution less than two years after it began, as a settlement has been approved between investors and the former auditors of a deceased fraudster.

Reporting by The Canberra Times covers a $3.5 million settlement in the class action brought against the auditors that were engaged by Melissa Caddick, an Australian financial adviser who defrauded investors prior to her disappearance and death in November, 2020. The settlement is the latest money recouped by Caddick’s investors, having already received $7.25 million following the sale of her assets by liquidators between 2023 and 2024. The class action targeted Caddick’s auditors on allegations that they had failed in their duties to audit their client’s self-managed superannuation funds, and had breached the Corporations Act.

The class action had been launched in September 2023 with Mackay Chapman representing 32 of Caddick’s former investors, with litigation funder Therium providing the financing for the lawsuit. Following the approval of the $3.5 million settlement by Federal court Justice Brigitte Markovic, Mackay Chapman will receive around $1 million in legal costs whilst Therium will be allocated a funding commission of $492,000. After disbursement costs, the claimants will receive the remaining $1.73 million from the settlement.

Michael Chapman, director at Mackay Chapman, described the settlement as “a great outcome for the group members”, and that his firm’s legal costs were recouped at discount to ensure that 50 per cent of the overall settlement was returned to the investors.

The settlement agreement did not contain any admission of liability by the auditors. The full settlement approval order with additional details on the disbursement of funds can be read here.

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Community Spotlights

Community Spotlight: Dean Gresham, Managing Director, Certum Group

March 31, 2025

Dean Gresham is a Managing Director who oversees the evaluation, underwriting, and risk management of all the company’s risk transfer solutions, including litigation finance and contingent risk insurance. With 25 years of experience in complex litigation and legal risk analysis, Dean ensures rigorous underwriting standards and strategic risk mitigation across the company’s risk transfer solutions.

Before joining Certum Group, Dean was a trial lawyer for more than 21 years handling complex commercial, catastrophic injury, qui tam, and class action litigation across the country. While practicing, Dean litigated on both sides of the docket and developed a keen ability to analyze and assess risk from both the plaintiff’s and defendant's unique perspectives.

In 2020, Dean was awarded the Elite Trial Lawyer of the Year award by the National Law Journal for his trailblazing work on a complicated wrongful adoption case. Dean is consistently chosen by his peers as a Texas Super Lawyer (2009-2024); one of the Best Lawyers in Dallas by D Magazine (2009-2024), one of the Top 100 Trial Lawyers in Texas by the National Association of Trial Lawyers (2011-2024), and in the Nation’s Top One Percent by the National Association of Distinguished Counsel (2019-2024).

Dean is the 2025 Chair of the Dallas Bar Association's prestigious Business Litigation Section and sits on the DBA’s Judiciary Committee.

Company Name and Description: Certum Group offers a next-generation litigation risk transfer platform that provides bespoke solutions for companies, law firms, and funders facing the uncertainty of litigation. Latin for “certainty,” Certum represents the core benefit the company delivers to its clients across its entire suite of risk transfer solutions. Certum is the full-service funding and insurance partner for law firms and their business clients.

Company Website: www.certumgroup.com

Year Founded: 2014

Headquarters: Plano, Texas

Area of Focus: Member: Head of Underwriting and Chair of the Investment Committee.

Member Quote: “Litigation funding doesn’t just fuel cases—it fuels justice. Power should never trump merit.”