Trending Now

All Articles

3818 Articles
Commercial

WilmerHale Critiques VC-Style Patent Funding for Misaligned Incentives

By John Freund |

In a provocative new white paper, WilmerHale attorneys argue that venture capital–style strategies applied to patent litigation funding are fueling a wave of meritless lawsuits and stifling innovation in the U.S. tech economy.

An article in JD Supra outlines the firm's concerns about how litigation funders increasingly adopt a venture capital mindset when backing large portfolios of patent suits with the expectation that one or two major wins will offset the losses.

The paper contends that this model encourages the pursuit of weak or overbroad claims by non-practicing entities (NPEs), often through shell companies that obscure the funders' identities and incentives. In one example cited, a single defendant was forced to defend against dozens of claims, most of which were later dropped or invalidated, resulting in significant financial and operational burdens.

The authors also raise national security concerns, pointing to the lack of transparency around foreign investors that may leverage U.S. litigation as a strategic tool. In response, WilmerHale recommends mandating up-front disclosure of litigation funders, expanding fee-shifting mechanisms under laws such as 35 U.S.C. § 285, and amending the Federal Rules of Civil Procedure to improve accountability.

These calls for reform arrive at a moment of increased scrutiny on third-party litigation finance, particularly in the intellectual property space. With transparency and disclosure at the center of WilmerHale’s proposed solutions, the paper adds to a growing chorus of voices calling for more regulatory oversight in the litigation finance ecosystem.

Announcements Commercial

ILFA Welcomes Commissioner McGrath’s Rejection of EU Regulation for Third-Party Litigation Funding

By John Freund |

On 18 November 2025, European Commissioner for Justice Michael McGrath closed the final meeting of the EU’s High-Level Forum on Justice for Growth with a clear statement that the Commission does not plan new legislation on Third Party Litigation Funding (TPLF). 

He added that Forum participants also indicated that there is no need to further regulate third-party litigation funding.

Instead, Commissioner McGrath said the Commission will prioritise monitoring the implementation of the Representative Actions Directive (RAD) over any new legislative proposals. 

(video from 2.32 here). 

Paul Kong, Executive Director of the International Legal Finance Association (ILFA), said:  “We’re delighted to see Commissioner McGrath’s clear statement that EU regulation for third-party litigation funding is not planned. This appears to close any talk of the need for new regulation, which was completely without evidence and created considerable uncertainty for the sector.

Over several years, ILFA has consistently made the case that litigation funding plays a critical role in ensuring European businesses and consumers can access justice without financial limitations and are not disadvantaged against larger and financially stronger defendants. New legislation would have choked off the availability of financial support to level the playing field for claimants. 

We will continue to work closely with the Commission to share the experiences of our members on the implementation of the RAD across the EU, ensuring it also works for claimants in consumer group actions facing defendants with deep pockets.”

About ILFA

The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate and influence legislative, regulatory and judicial landscapes as the global voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world. For more information, visit www.ilfa.com or @ILFA_Official. 

About the High-Level Forum on Justice for Growth

European Commissioner for Justice Michael McGrath launched the High-Level Forum on Justice for Growth in March 2025 to bring together legal industry experts to “focus on and discuss together how justice policies can contribute to – and further support – European competitiveness and growth”. The final meeting of the Forum took place on 18 November 2025, in Brussels. 

Commercial

Litigation-Funding Investment Market to Hit USD 53.6B by 2032

By John Freund |

A new report projects that the global litigation-funding investment market will reach approximately USD 53.6 billion by 2032, growing at a compound annual growth rate (CAGR) of about 13.84 percent. This robust growth forecast is driven by increasing demand for third-party financing in commercial litigation, arbitration, and high-stakes legal disputes. Investors are seeking exposure to legal-asset strategies as an uncorrelated return stream, while funders are scaling up to handle more complex, higher-value outcomes.

According to the article in Yahoo News, the market’s expansion is fueled by several structural shifts: more claimants are accessing capital through non-traditional financing models, law firms are leaning more on outside capital to manage cost and risk, and funders are expanding their product offerings beyond single-case funding. While the base market size was not specified in the summary, earlier industry data suggests significant growth from previous levels, with the current projection indicating a several-fold increase.

Still, the path forward is not without challenges. Macroeconomic factors, regulatory ambiguity, and constraints within the legal services ecosystem could affect the pace and scale of growth. Funders will need to maintain disciplined underwriting standards and carefully manage portfolio risks—especially as the sector becomes increasingly mainstream and competitive.

For the legal funding industry, this forecast reinforces the asset class's ongoing maturation. It signals a shift toward greater institutionalization and scale, with potential implications for pricing, transparency, and regulatory scrutiny. Whether funders can balance growth with rigor will be central to the market’s trajectory over the coming decade.

Announcements Commercial

Pogust Goodhead Appoints Jonathan Edward Wheeler as Partner and Head of Mariana Litigation

By John Freund |

Pogust Goodhead law firm has appointed Jonathan Edward Wheeler as a partner and Head of Mariana Litigation, adding heavyweight firepower to the team driving one of the largest group claims in English legal history following the firm’s landmark liability win against BHP in the English courts.

Jonathan joins Pogust Goodhead from Morrison Foerster in London, where he was a leading commercial litigation partner, having served for seven years as office co-managing partner and for 15 years as Head of Litigation. A specialist in complex, cross-border disputes, Jonathan has extensive experience acting in high-value commercial litigation, civil fraud and asset tracing, international trust disputes, contentious insolvency and investigations across multiple jurisdictions.

In his new role, Jonathan will assume strategic leadership of the proceedings arising from the Mariana dam disaster against mining giant BHP, overseeing the continued development of the case into the damages phase and working closely with colleagues in Brazil, the UK, the Netherlands and beyond.

Howard Morris, Chairman at Pogust Goodhead said: “Jonathan is a heavyweight addition to Pogust Goodhead and to our Mariana team. His track record in running some of the most complex cross-border disputes in the English courts, together with his leadership experience, make him exactly the kind of senior figure we need after our historic liability victory. Our clients will benefit enormously from his expertise and judgment.”

Jonathan Wheeler said: “It is a privilege to join Pogust Goodhead at such a pivotal moment in the Mariana case. The recent liability judgment is a watershed for access to justice and corporate accountability. I am honoured to help lead the next phase of this extraordinary litigation and to work alongside a team that has shown such determination in seeking justice for hundreds of thousands of victims.”

Alicia Alinia, CEO at Pogust Goodhead said: “Bringing in lawyers of Jonathan’s calibre is a strategic choice. As we expand the depth and breadth of our disputes practice globally, we are investing in senior talent who can help us deliver justice at scale for our clients and build an even more resilient firm.”

The Mariana proceedings in England involve over 600,000 of Brazilian individuals, businesses, municipalities, religious institutions and Indigenous communities affected by the 2015 Fundão dam collapse in Minas Gerais, Brazil. Following the English court’s decision on liability on the 14th of November 2025, the case will now move into the next stage focused on damages and the quantification of losses on an unprecedented scale.

Commercial

APCIA Urges House to Pass Litigation Funding Disclosure Reforms

By John Freund |

The American Property Casualty Insurance Association (APCIA) is renewing its call for Congress to advance two pieces of legislation aimed at increasing transparency in third-party litigation funding (TPLF). According to a recent article in Insurance Journal, APCIA is backing the Litigation Transparency Act of 2025 (H.R. 1109) and the Protecting Our Courts from Foreign Manipulation Act of 2025 (H.R. 2675) as key reforms for federal civil litigation.

An article in Insurance Journal reports that the House Judiciary Committee is expected to mark up both bills, which would require disclosure of TPLF in federal cases, and in the case of H.R. 2675, bar foreign governments and sovereign-wealth funds from investing in U.S. litigation. APCIA’s senior vice president for federal government relations described the measures as bringing “needed transparency for one of the largest cost drivers of insurance premiums — third-party litigation funding.”

In support of its advocacy, APCIA cited research from the consulting firm The Perryman Group, which estimated that excess tort costs in the U.S. amount to $368 billion annually — with each household absorbing roughly $2,437 in additional costs per year across items such as home and auto insurance and prescriptions.

While tax reform efforts once included proposals targeting funder profits, budget-rule constraints prevented those from advancing.

Commercial

Burford Capital Underscores Data‑Driven Settlement Strategies

By John Freund |

Burford Capital and Solomonic explore how seasoned funders and advisers can bring precision to the settlement table in high‑stakes disputes.

An article on Burford’s website states that the joint webinar, hosted by James MacKinnon (Burford) and Edward Bird (Solomonic), featured experts from Herbert  Smith  Freehills  Kramer, Pallas  Partners and Dectech to discuss how analytics can reshape settlement strategy. The piece highlights that large‑value disputes often take far longer and face steeper odds of success — not because high‑value claims are inherently weaker, but because risk‑seeking behaviour tends to dominate when the stakes rise.

Burford explains its method of translating a multi‑headed claim into a “weighted average damages outcome,” then discounting for trial risk, appellate risk, enforcement risk and cost of capital to arrive at a present‑day valuation. In one example, a claim with a theoretical maximum of US$500 million was valued at just under US$76 million after risk‑adjustment — meaning a settlement at or above that number would objectively represent success given the circumstances.

The article also reflects on the evolving role of AI and analytics. While data models are improving, Burford cautions that predictive systems remain dependent on data quality and expert inputs — underscoring that modelling alone is not a substitute for judgment and experience.

Commercial Regulatory Issues

Proposed TPLF Bill Sparks Privacy Concerns Across Legal Landscape

By John Freund |

A new legislative push to increase transparency in third-party litigation funding (TPLF) has ignited concern over the potential erosion of individual privacy rights, especially for plaintiffs involved in sensitive litigation. While the bill aims to shed light on opaque funding arrangements, critics warn that it could open the door to broad and unnecessary disclosures of personal data.

An article in The Hill notes that among the more controversial aspects of the proposed bill is its requirement that plaintiffs and their attorneys disclose the details of any litigation funding agreements. These disclosures could go far beyond identifying funders, potentially revealing case-specific facts, medical or financial histories, and other personally identifiable information. There is no clear guidance on how such disclosures would be protected, raising the specter of public filings that expose vulnerable claimants to undue scrutiny or retaliation.

The breadth of the bill has drawn particular criticism. While aimed at foreign or undisclosed financial backers, its language is sweeping enough to encompass nearly any financial relationship, including arrangements with U.S.-based funders operating under existing regulatory frameworks. Legal observers worry that plaintiffs—especially those with lower means—may be discouraged from pursuing meritorious claims due to the fear of invasive data exposure.

Privacy advocates argue that without significant revisions, the bill risks creating a litigation environment in which strategic intelligence gathering by adversaries, funder interference, and reputational harms become routine. Several industry experts are calling for narrowly tailored disclosures limited to material funding terms, coupled with robust confidentiality protections and strict limits on public access.

Case Developments Commercial

Uber Told £340m Group Claim Must Follow Costs Budgeting Rules

By John Freund |

In a notable ruling, the High Court has directed that a £340 million group action against Uber London Ltd will be subject to costs budgeting, despite the claim’s substantial size. The decision was handed down in the case of White & Ors v Uber London Ltd & Ors, where the total value of the claim far exceeds the £10 million threshold above which costs budgeting is typically not required under the Civil Procedure Rules.

According to Law Gazette, Mrs Justice O’Farrell chose to exercise judicial discretion to apply the budgeting regime. Her decision marks a significant moment for large-scale group litigation in England and Wales, underscoring the court’s growing interest in ensuring proportionality and transparency of legal costs—even in high-value cases.

An article in the Law Society Gazette reports that the ruling means the parties must now submit detailed estimates of incurred and anticipated legal costs, which will be reviewed and approved by the court. This move imposes a degree of cost control typically absent from group claims of this scale and signals a potential shift in how such cases are managed procedurally.

The decision carries important implications for the litigation funding industry. Funders underwriting group claims can no longer assume exemption from cost control measures based on claim size alone. The presence of court-approved cost budgets may impact the funders’ risk analysis and return expectations, potentially reshaping deal terms in high-value group actions. This development could prompt more cautious engagement from funders and a closer examination of litigation strategy in similar collective proceedings moving forward.

Commercial

Will Law Firms Become the Biggest Power Users of AI Voice Agents?

By Kris Altiere |

The following article was contributed by Kris Altiere, US Head of Marketing for Moneypenny.

A new cross-industry study from Moneypenny suggests that while some sectors are treading carefully with AI-powered voice technology, the legal industry is emerging as a surprisingly enthusiastic adopter. In fact, 74% of legal firms surveyed said they are already embracing AI Voice Agents , the highest adoption rate across all industries polled.

This may seem counterintuitive for a profession built on human judgement, nuance and discretion. But the research highlights a growing shift: law firms are leaning on AI not to replace human contact, but to protect it.

Why Legal Is Leaning In: Efficiency Without Eroding Trust

Legal respondents identified labor savings (50%) as the most compelling benefit of AI Voice Agents.  But behind that topline number sits a deeper story:

  • Firms are increasingly flooded with routine enquiries.
  • Clients still expect immediate, professional responses.
  • Staff time is too valuable to spend triaging logistics.

Kris Altiere, US Head of Marketing at Moneypenny, said:
“Some companies and callers are understandably a little nervous about how AI Voice Agents might change the call experience. That’s why it’s so important to design them carefully so interactions feel personal, relevant, and tailored to the specific industry and situation. By taking on the routine parts of a call, an AI agent frees up real people to handle the conversations that are more complex, sensitive, or high-value.”

For the legal sector, that balance is particularly valuable.

A Look At Other Industries

Hospitality stands out as the most reluctant adopter, with only 22% of companies using AI-powered virtual reception for inbound calls and 43% exploring AI Voice Agents.
By contrast, the legal sector’s 74% engagement suggests a profession increasingly comfortable pairing traditional client care with modern efficiency.

The difference stems from call types: whereas hospitality relies heavily on emotional warmth, legal calls hinge on accuracy, confidentiality, and rapid routing areas where well-calibrated AI excels.

What Legal Firms Want Most From AI Voice Agents

The research reveals where legal sees the greatest potential for AI voice technology:

  • Healthcare: faster response times (75%)
  • Hospitality: reducing service costs (67%)
  • Real estate: enhanced call quality and lead qualification (50%)
  • Finance: 24/7 availability (45%), improved caller satisfaction (44%), scalability (43%)

Legal’s top future use case is appointment management (53%).

This aligns neatly with the administrative pain points most firms face,  juggling court dates, consultations and multi-lawyer calendars.

Each industry also had high expectations for AI Voice Agent features, from natural interruption handling to configurable escalation rules.
For legal, data security and compliance topped the list at 63%.

This security-first mindset is unsurprising in a sector where reputation and confidentiality are non-negotiable.

Among legal companies, 42% said that integration with existing IT systems like CRM or helpdesk tools was critical.

This points to a broader shift: law firms increasingly want AI not just as a call handler but as part of the client-intake and workflow ecosystem.

The Bigger Trend: AI to Protect Human Time

Across every industry surveyed, one theme is emerging: companies don’t want AI to replace humans ,they want it to give humans back the time to handle what matters.

For legal teams, this means freeing lawyers and support staff from constant call-handling so they can focus on high-value, sensitive work.

Why This Matters for Law Firms in 2025

The AI adoption race in legal is no longer about novelty; it’s about staying competitive.

Clients expect real-time responses, yet firms are constrained by staffing and increasing administrative load. Well-designed AI Voice Agents offer a way to protect responsiveness without compromising on professionalism or security.

With compliance pressures rising, talent shortages ongoing, and client acquisition becoming more competitive, the research suggests law firms are turning to AI as a strategic solution and not a shortcut.

Moneypenny’s Perspective

Moneypenny, a leader in customer communication solutions, recently launched its new AI Voice Agent following the success of an extensive beta program. The next-generation virtual assistant speaks naturally with callers, giving businesses greater flexibility in how they manage customer conversations.