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IMF Bentham Formally Jumps into Contentious CBL Class Action

Last week, we reported on the contentious back-and-forth between litigation funders LPF Group and IMF Bentham. LPF accused IMF of muddying the waters with a potential shareholder action against failed insurer CBL, whom LPF is already bankrolling an action against. Now, IMF Bentham has formally stepped into the fray, after law firm Glaister Ennor filed a shareholder action which the Aussie-based funder is backing on a no-win, no-fee basis.

As reported in RNZ, Glaister and IMF claim to have a significant number of both retail and institutional investors, who together purchased tens of millions of shares in CBL prior to its February, 2018 collapse. The insurer was worth $750MM on the New Zealand stock exchange when it fell apart.

The Financial Markets Authority and Serious Fraud Office are investigating CBL, and LPF is already funding a shareholder action against the defunct insurer, alleging a breach of continuous disclosure obligations and insider trading by company directors. Upon IMF’s announcement that it was considering its own action, LPF filed a complaint to ASIC stating that potential plaintiffs are likely to be confused by the dual action, which LPF director Phil Newland says is highly irregular.

New Zealand’s class action regime is far less robust than that of neighboring Australia, given the lack of such actions – especially shareholder actions. However such actions are on the rise in New Zealand thanks to litigation funding, so it will be interesting to see how the court handles the competing actions.

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Commercial Funder Faces Costs in Rugby Concussion Case

By John Freund |

A procedural ruling in London has put fresh heat on the brain-injury lawsuits rocking the rugby world. Senior Master Jeremy Cook lambasted solicitor Richard Boardman of Rylands Garth for “serious and widespread failures” in disclosure, finding that more than 90 percent of claimants lacked complete medical records. Crucially, Cook held that the claimants, “backed by a commercial litigation funder,” must pick up the tab for the defendants’ wasted costs—a rare instance of a funder’s involvement directly influencing a costs order.

The Guardian reports that over 1,000 former players allege governing bodies failed to protect them from repeated head trauma. While Cook declined to strike the claims, he warned that continued non-compliance could cull large portions of the roster before trial, now pencilled for 2026. The ruling also exposes tensions between rapid claimant sign-ups—fuelled by aggressive funding and advertising spend—and the evidentiary rigour English courts demand.

The decision is a shot across the bow for mass-tort funders operating in the UK. Expect tougher underwriting of medical-evidence protocols and sharper diligence on claimant-solicitor capacity. If courts keep linking funder money to costs penalties, premium pricing for sports-concussion risks may climb, and portfolio-level insurance such as ATE could become mandatory. The wider question: will stricter case management streamline meritorious claims—or chill capital for socially significant litigation? LFJ will be watching.

APCIA Backs Bills Demanding Transparency in Third-Party Litigation Funding

By John Freund |

The American Property Casualty Insurance Association (APCIA) has thrown its weight behind two House measures—Rep. Darrell Issa’s Litigation Transparency Act (H.R. 1109) and Rep. Ben Cline’s Protecting Our Courts from Foreign Manipulation Act (H.R. 2675). Both bills would force parties in federal civil actions to disclose third-party litigation-funding (TPLF) arrangements, while the latter would outright ban sovereign-wealth and foreign-state backing.

An article in Insurance Business America reports that APCIA’s federal-affairs chief, Sam Whitfield, told lawmakers at last week’s “Foreign Abuse of US Courts” hearing that undisclosed financiers inflate non-economic damages and, by extension, insurance premiums. Whitfield argued that hedge funds, private-equity vehicles and sovereign funds can currently steer litigation strategy from the shadows, possibly compromising national-security interests by harvesting sensitive discovery.

The legislation builds on a drumbeat of recent policy bids: Senate proposals to tax funder profits at 41%, a bipartisan push for MDL disclosure rules, and state-level consumer-funding caps. Unlike prior efforts, the Issa and Cline bills squarely target transparency and foreign capital rather than pricing, a framing likely to resonate with moderates concerned about geostrategic risk.

While passage in the current Congress is far from certain, APCIA’s endorsement amplifies industry pressure on lawmakers—and could spur compromises that impose at least some reporting duty on commercial funders.

Theo.Ai Taps Johansson as Head of Legal Product

By John Freund |

Theo Ai has elevated litigation strategist Sarah Johansson to Head of Legal Product, a move the Palo Alto-based start-up says will help turn its AI-driven prediction engine into an everyday tool for Big Law, in-house counsel, and litigation financiers seeking sharper case analytics.

A notice in PR Newswire details how the London-trained attorney—whose résumé spans multimillion-dollar disputes at Rosling King LLP and an LL.M. from Georgetown—has spent the past year embedding with client legal teams to refine Theo Ai’s settlement-value and win-probability models. Her new remit is to scale those insights into a product roadmap that lawyers trust and investors can underwrite against.

Johansson steps into the role as Theo Ai builds traction among capital providers: the company recently closed a $4.2 million seed round and announced a strategic partnership with Mustang Litigation Funding, signaling that funders see AI-assisted diligence as a competitive edge.

Co-founder and CEO Patrick Ip credits Johansson’s skill at “translating legal complexity into product clarity” for bridging the cultural gap between data scientists and courtroom veterans. The platform ingests historical docket data and real-time analytics to forecast outcomes, a workflow analysts say can compress decision cycles for both lawyers and financiers.

With underwriting speed and accuracy now table stakes, Johansson’s charter to align product features with frontline legal workflows could accelerate adoption of predictive analytics across the funding sector. The Mustang tie-up bears watching as a template for deeper, data-sharing collaborations between tech providers and funders eager to price risk in an increasingly crowded market.