Trending Now
  • Sigma Funding Secures $35,000,000 Credit Facility, Bryant Park Capital Serves as Financial Advisor
Commercial Deals

LFJ Dealmakers Panel: Opportunities at the Intersection of Funding, Mass Torts & ABS

September 28, 2023

LFJ Dealmakers Panel: Opportunities at the Intersection of Funding, Mass Torts & ABS

The panel discussion consisted of Jacob Malherbe, CEO of X Social Media, Sara Papantonio, Partner at Levin Papantonio Rafferty, and Ryan Stephen, Managing Partner of Pine Valley Capital Partners. The panel was moderated by Steve Nober, CEO of Consumer Attorney Marketing Group (CAMG), The discussion spanned the following topics:
  • Who’s doing what in mass torts? How about funding?
  • How funders are evaluating and working with firms
  • Examples of the ABS framework in action & challenges
  • Pre- and post-settlement funding and time to disbursement
The conversation began around the integration of litigation funders into the mass torts sector. There are a lot of variables to consider around mass torts which typically don’t exist in other case types. These include marketing ethics, use of proceeds, claimant access and relationship building, where the call center is located, firm operations at an administrative level, etc. These are all aspects of a law firm that litigation funders need to understand if they are going to partner with a mass torts law firm. The degree of diligence is vast, and will require a years-long commitment. What’s more, there is now a focus on unethical marketing practices, with Congress taking a look at the tactics being used. The question for funders is, how can you protect yourself from unethical marketing efforts (funders might be named in a suit against the law firm). Funders need to mitigate these risks by asking more questions at the outset: What kind of advertising is being used, where are the clients coming from, how do I know that the clients are real (ad tracking)? Too many funders are pouring money into this lucrative space, and run the risk of encountering scammers who set up a business looking to raise money for a mass torts claim, when they have no ability to secure claimants or conduct the proper marketing outreach. What this comes down to at its core is relationships—understanding and knowing who you’re working with. Funders need to feel that the law firm they partner with us trustworthy, but of course should still conduct their own diligence to verify that all activities are on the up and up. On this last point, the panel recommends creating more nuanced tracking—not just ‘cost per case.’ Track advertising costs, medical records, other marketing materials. Really understand how money is moving at a granular level. The discussion then pivoted over to the Camp Lejeune case. Sara Papantonio feels that there will be one more opportunity to make a push for cases when payouts start happening. The question is, will there be enough time to advertise and file a claim before the statute of limitations runs out? Papantonio also noted that many clients won’t qualify for the elective option, and those that do probably won’t take it because of how undervalued it is. So likely, we will see more cases move into litigation. Values are starting to be presented for Tier 1 and Tier 2 injuries, which will help push this into litigation as well. She believes around May of 2024 will be an opportunity to advertise, but the statute of limitations runs out in August. Papantonio explained that Tier 1 injuries are far less risk for funders and litigators. Tier 2s and Tier 3s will have to move through a process, and some won’t be approved, so there is more risk there. Papantonio also believes the fees will be capped at 20-25%, which was the DOJs recommendation. So funders and law firms should plan for that. One final point Papantonio made, was that these mega mass torts are sucking up all the oxygen in the space, but there are plenty of smaller torts that are very meritorious and present opportunities for funders and law firms. The panel concurred, given that $1 billion has spent on Camp Lejeune already, so any new entrants into that claim are coming in late stage. Panelists Ryan Stephen and Jacob Malherbe added that torts such as Tylenol, Roundup part two, paraquat, PFAS claim (which the panel believes might become the biggest case ever), anti-terrorism cases, and others. Malherbe even recommended ‘The Devil We Know,’ a documentary on Netflix about the PFAS claim—so anyone interested can follow up with some binge watching!

Commercial

View All
Announcements Commercial Fundraising

Sigma Funding Secures $35,000,000 Credit Facility, Bryant Park Capital Serves as Financial Advisor

By John Freund |

Bryant Park Capital (“BPC”) announced today that Sigma Funding has recently closed a $35 million senior credit facility with a bank lender. Sigma Funding is a rapidly growing litigation finance company focused on providing capital solutions across the legal ecosystem.

Sigma’s experienced executive team oversees a portfolio of businesses spanning insurance-linked litigation and other sectors, bringing a proven track record of successful growth and meaningful exits.

Bryant Park Capital, a leading middle-market investment bank, served as financial advisor to Sigma Funding in connection with the transaction.

“Bryant Park Capital was an indispensable advisor to Sigma and worked closely with our management team throughout the process,” said Charlit Bonilla, CEO of Sigma Funding. “BPC’s experience in the litigation finance space was critical in identifying potential banking partners and ultimately structuring our credit facility. Their extensive industry knowledge helped bring this deal to a successful close, and we are grateful for their support. We look forward to doing more business with the BPC team.”

About Sigma Funding

Founded in 2021, Sigma Funding is a leading New York–based litigation funding platform that provides pre- and post-settlement advances to plaintiffs involved in contingency lawsuits, as well as financing solutions for healthcare providers and attorneys. The company is the successor to the founders’ prior venture, Anchor Fundings, a pre-settlement litigation funder that was acquired by a competitor. 

For more information about Sigma Funding, please visit www.sigmafunding.com.

About Bryant Park Capital

Bryant Park Capital is an investment bank providing M&A and corporate finance advisory services to emerging growth and middle-market public and private companies. BPC has deep expertise across several sectors, including specialty finance and financial services. The firm has raised various forms of credit and growth equity and has advised on mergers and acquisitions for its clients. BPC professionals have completed more than 400 engagements representing an aggregate transaction value exceeding $30 billion.

For more information about Bryant Park Capital, please visit www.bryantparkcapital.com.

Commercial People Moves

Invenio Adds Litigation Finance Veteran John J. Hanley as Partner

By John Freund |

Invenio has announced the addition of John J. Hanley as a partner, bolstering the firm’s bench in litigation finance, claim monetization, and structured finance. Hanley joins Invenio with a practice that sits squarely at the intersection of complex commercial litigation and sophisticated financial structuring, advising a wide spectrum of market participants including litigation funders, claimholders, law firms, hedge funds, investment funds, and specialty finance providers.

According to Invenio's website, Hanley brings a particular focus on structuring, negotiating, and executing advanced funding arrangements across the full litigation finance lifecycle. His experience spans single-case funding, portfolio transactions, and bespoke claim monetization structures, with a notable specialization in prepaid forward purchase agreements. In addition, Hanley has advised extensively on secured lending transactions involving banks, commercial lenders, and alternative capital providers—experience that aligns closely with the hybrid legal-financial nature of modern litigation funding deals.

A post on LinkedIn announcing the move highlights that Hanley’s practice is designed to support both the capital side and the legal side of funded disputes, an increasingly important capability as funding arrangements grow more complex and interconnected with broader capital markets. His background enables him to navigate not only the legal risks inherent in funding structures, but also the financial and regulatory considerations that sophisticated investors expect to see addressed at the outset of a transaction.

Commercial Regulatory Issues

Malaysia Launches Modern Third-Party Funding Regime for Arbitration

By John Freund |

Malaysia has officially overhauled its legal framework for third-party funding in arbitration, marking a significant development in the country’s dispute finance landscape. Effective 1 January 2026, two key instruments, the Arbitration (Amendment) Act 2024 (Act A1737) and the Code of Practice for Third Party Funding 2026, came into force with the aim of modernising regulation and improving access to justice.

An article in ICLG explains that the amended Arbitration Act introduces a dedicated chapter on third-party funding, creating Malaysia’s first comprehensive statutory foundation for funding arrangements in arbitration. The reforms abolish the long-standing common law doctrines of maintenance and champerty in the arbitration context, removing a historical barrier that could render funding agreements unenforceable on public policy grounds.

The legislation also introduces mandatory disclosure requirements, obliging parties to reveal the existence of funding arrangements and the identity of funders in both domestic and international arbitrations seated in Malaysia. These changes bring Malaysia closer to established regional arbitration hubs that already recognise and regulate third-party funding.

Alongside the legislative amendments, the Code of Practice for Third Party Funding sets out ethical standards and best practices for funders operating in Malaysia. The Code addresses issues such as marketing conduct, the need for funded parties to receive independent legal advice, capital adequacy expectations, the management of conflicts of interest, and rules around termination of funding arrangements. While the Code is not directly enforceable, arbitral tribunals and courts may take a funder’s compliance into account when relevant issues arise during proceedings.

The Legal Affairs Division of the Prime Minister’s Department has indicated that this combined framework is intended to strike a balance between encouraging responsible third-party funding and improving transparency in arbitration. The reforms also respond to concerns raised by high-profile disputes where funding arrangements were not disclosed, highlighting the perceived need for clearer rules.