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Commercial Deals

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!

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Commercial Regulatory Issues

As Funders Dodge 40% Tax, Questions Remain

By John Freund |

Litigation financiers have narrowly sidestepped what many saw as an existential threat: a 40 percent federal tax on funding profits that had been quietly tucked into the Senate’s sprawling reconciliation bill. While the proposal’s defeat means the industry will remain in tact, the close call has exposed deep fissures in an industry still fighting for political legitimacy.

An article in Bloomberg recounts how the International Legal Finance Association (ILFA) scrambled a last-minute “war room,” tapping GOP fixer Pete Kirkham and leaning on senators Ron Wyden and Mike Lee to invoke the Byrd Rule and strip the revenue provision before a floor vote. The measure, authored by Sen. Thom Tillis, would have taxed funders at the top individual rate (37%) plus an additional 3.8%, barred loss-netting and lifted shields for tax-exempt investors—changes projected to raise $3.5 billion over a decade.

ILFA’s rapid mobilization underscored the piecemeal nature of the sector’s advocacy. Omni Bridgeway portfolio manager Gian Kull lamented that funders “are not one unified entity, like private equity,” while Parker Poe partner Michael Kelley called the bill “a rifle shot right to the heart.” Yet not every member chipped in for the fight, reviving free-rider complaints in an a highly fragmented industry. Meanwhile, opponents led by the U.S. Chamber of Commerce—and vocal corporates Johnson & Johnson, Exxon Mobil and Liberty Mutual—signaled they will pivot to state legislatures and renewed transparency drives.

Writing on LinkedIn, Peter Petyt, founder of 4 Rivers Legal underscored the urgency of the current moment: "This moment calls for more than celebration — it demands leadership. The industry must come together to educate, advocate, and engage with lawmakers and the public in a constructive way."

For funders, the episode is a stark reminder that large corporations are gunning for this industry's very existence. Expect beefed-up lobbying budgets, accelerated ILFA recruitment and louder messaging on consumer access to justice as the industry braces for the next volley in what is fast becoming a multi-front policy war on third-party capital.

Case Developments Commercial

Burford-Backed Claimants Gain Brief Stay in YPF Turnover Dispute

By John Freund |

A Manhattan federal judge has handed Argentina a three-day reprieve in the long-running Petersen / Eton Park saga, pausing enforcement of a $16.1 billion judgment that would force the hand-over of the country’s 51 percent stake in YPF.

Reuters notes that Judge Loretta Preska pushed the turnover deadline to July 17 so Buenos Aires can seek emergency relief from the Second Circuit, while chastising the sovereign for what she called “continued delay and circumvention.” The minority shareholders—represented by Burford Capital—stand to capture as much as 73 percent of the proceeds if Argentina ultimately pays, a prospect the Milei administration says could destabilize an economy already battling 200 percent inflation and dwindling reserves.

Preska’s order reinforces New York courts’ willingness to deploy drastic remedies against recalcitrant sovereigns, signalling that litigation financiers can indeed convert paper judgments into hard assets—even politically sensitive ones like a controlling stake in a national oil champion.

For the wider industry, the decision spotlights the enforcement stage as a fertile (and risky) arena for capital deployment. Success here could spur more sovereign-related funding, but also sharpen calls for transparency around funder returns when public assets are at stake.

Commercial People Moves

Fieldfisher Taps Jackson-Grant as Pricing Chief

By John Freund |

Fieldfisher has recruited litigation-funding specialist Verity Jackson-Grant to the newly created post of Head of Commercial Pricing, underscoring the firm’s intent to capitalize on sophisticated fee and finance structures in the wake of last year’s PACCAR fallout. Jackson-Grant, best known for translating third-party capital into user-friendly products for corporate clients, will sit within the firm’s European finance team and manage a multi-office pricing unit.

An update on LinkedIn confirms her appointment, noting that she will “drive and shape” Fieldfisher’s pricing strategy across the continent. The role’s blueprint calls for rolling out “creative pricing models” that enhance client profitability and embed alternative fee arrangements into disputes workflows.

Jackson-Grant brings a rare blend of funding fluency and law-firm know-how. A former director at TheJudge, she brokered litigation-finance and ATE insurance packages before moving in-house to develop alternative pricing frameworks for major UK and US practices.