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Community Spotlights

Community Spotlight: Guillermo Ruiz Medrano, Attorney, CUATRECASAS

By John Freund |

Guillermo Ruiz Medrano is a Spanish lawyer based in Barcelona, specializing in advising local and international clients on litigation finance deals and restructuring transactions, with a focus on international and cross-border deals, and engaged in the implementation of cutting-edge litigation funding structures.

Company Name and Description: CUATRECASAS - a leading multi-disciplinary Spanish law firm, providing comprehensive legal services to clients across various industries. With a strong presence in Spain, Portugal, and Latin America, among others, the firm is recognized for its innovative solutions and commitment to excellence.  

Company Website: https://www.cuatrecasas.com/en/spain/

Year Founded: 1917

Headquarters: Barcelona and Madrid (Spain).

Area of Focus: Litigation Funding and Restructuring

Member Quote: Litigation funding in Spain is experiencing a dynamic transformation, making it an exciting jurisdiction for both national and international players. With the market expanding rapidly and new regulations on the horizon, particularly for consumer cases, Spain offers a fertile ground for innovative funding solutions. This burgeoning landscape ensures that litigation funding here is not only robust but also poised for sustainable growth, making Spain a premier destination for legal investment.

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Pegasus Legal Capital Completes $74 Million Securitization to Fuel Growth

Pegasus Legal Capital, LLC ("Pegasus") (mylawfunds.com), a prominent pre-settlement legal funding company in the United States, announced today that it has successfully completed a $74 million litigation finance securitization. This achievement marks Pegasus' second securitization transaction in the asset class and another significant milestone in its capital market journey. The proceeds from this transaction will further propel Pegasus' growth across key markets in the United States.

Pegasus Managing Director, Alexander Khanas, expressed, "With the successful completion of this transaction, Pegasus will expand its business in the personal injury market while upholding its industry-leading service standards."

GreensLedge Capital Markets LLC played the role of Placement Agent for Pegasus. GreensLedge Senior Managing Director, Douglas Lipton, added, "We are delighted to continue expanding Pegasus' investor base through their second securitization issuance and assisting them in creatively developing their platform."

Headquartered in Deerfield Beach, Florida, Pegasus was founded in 2008 as a pre-settlement litigation finance company. Since its inception, the company's management team has successfully sourced, underwritten, and serviced over half a billion dollars through more than 30,000 advances. While Pegasus has traditionally focused on the New York market, it has established a strong presence in the Southeast and Texas markets as well.

Pegasus is a proud member of the American Legal Finance Association (ALFA), a national organization comprising companies that provide non-recourse funds to personal injury victims. ALFA's primary objective is to establish industry standards for transparency in legal funding transactions, ensuring upfront and clear disclosure to consumers.

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Litigation Lending Appoints Emma Colantonio as Chief Investment Officer

In a post on LinkedIn, Australian funder Litigation Lending Services (LLS) announced the promotion of Emma Colantonio to the position of Chief Investment Officer. In the announcement, LLS said that Emma’s dedication and strategic insight have been instrumental to the success of the business.

Colantonio joined LLS in 2021 as an investment manager and served in that role for two years before being promoted to senior investment manager in May 2023. Prior to joining LLS in 2021, Colantonio had also spent five years at MinterEllison as a senior associate, as well as having served as a senior legal counsel at Commonwealth Bank. 

In her own post on LinkedIn, Colantonio provided the following comment: “Excited to step into the role as Chief Investment Officer at Litigation Lending Services Limited! A big thank you to the leadership team for their trust and support. Looking forward to driving our mission forward and exploring new opportunities in litigation funding.”As LFJ reported in August of this year, Colantonio was recently appointed to the board of The Association of Litigation Funders of Australia (AALF) as a non executive director, replacing LLS’ own Stephen Conrad in that position.

IQUote Acquires Over 1,000 Cryptocurrency Claims

The enthusiasm for cryptocurrency over recent years has seen retail investors look to these digital assets as a route to impressive financial returns. However, this relatively nascent and unregulated asset class has also resulted in a significant amount of malpractice and criminal activity, leading to a surge in related legal cases that some funders are engaging with.

An article in TheBusinessDesk covers the news that IQuote, a Manchester-based litigation funder, has acquired over 1,000 claims related to cryptocurrency fraud. The cases that IQuote is funding are being brought by individuals who have been the victims of crypto scams or had their digital assets stolen. IQuote’s acquisition of these claims was achieved both through marketing efforts and organic traffic, with the individual value of the cases ranging from £10,000 to £10 million.

Craig Cornick, founder and chief executive, stated: “At IQuote, we are continually evolving our funding strategies to stay aligned with the dynamic and rapidly changing litigation landscape and are committed to helping victims receive justice. Our goal is to ensure that our financial solutions not only meet the current demands of the legal industry but also anticipate future trends, providing innovative and sustainable funding options for our clients.”

New Burford Capital Research Reveals How Businesses are Preparing for Likely Rise in Global Energy Transition Disputes

By Harry Moran |

Burford Capital, the leading global finance and asset management firm focused on law, today releases new research entitled “Energy transition disputes: GCs and senior lawyers on the business impacts of legal challenges to come,” which demonstrates how businesses are preparing for a likely rise in legal disputes related to the global energy transition. This transition―or the shift to renewable sources of energy―is likely to cause an increase in expensive commercial disputes.

Businesses are investing significant sums in this transition, and corporate commitments highlight the scale of economic engagement as they invest in the new technologies, infrastructure and other resources that will be needed. But multifaceted legal and commercial pressures present businesses with a myriad of potential challenges including contractual disagreements, regulatory compliance issues and the need for intellectual property enforcement or litigation. Burford’s research report aims to offer a unique perspective on how corporations foresee the expected rise in litigation and arbitration related to this energy transition, examining the areas of business impact related to this evolving landscape.

Burford commissioned this independent research by capturing insights from 300 GCs and heads of litigation across key industries impacted by the energy transition and spanning North America, Europe, Asia and Australia.

Key findings from the study include:

Disputes relating to the energy transition are rising

·       76% of GCs report they are already encountering disputes related to the energy transition and nearly half (47%) expect a further rise in the volume of such disputes in the next decade, driven by evolving laws, new technologies and infrastructure requirements.

Disputes relating to the energy transition are expected to be costly

·       Almost two in three GCs (63%) expect legal fees and expenses to exceed $4 million per energy transition case; a notable minority (29%) expect per case costs to exceed $10 million.

·       Over half (52%) view high costs as a significant factor in deciding not to pursue disputes.

·       Half (50%) of GCs agree that the energy transition will create the need for additional capital sources for the business.

Expected disputes span all types of business conflict

·       GCs are most likely to predict (77%) that the energy transition will result in more contractual disputes and commercial arbitration.

·       Joint ventures are expected to be particularly prone to disputes over profit allocation (76%) and intellectual property rights (65%).

·       Over half of GCs (57%) also expect their businesses to face arbitrations to resolve investor-state conflicts relating to the transition.

New tools are needed to manage the rising dispute costs

·       Legal finance is increasingly used to mitigate the financial burden of these disputes; three in four (75%) GCs have used or would consider using legal finance to offset the cost of disputes relating to this transition.

·       In particular, GCs value monetization―or advancing some of the expected entitlement of a pending claim, judgment or award― to generate liquidity from claims tied up in litigation and arbitration. With legal finance, companies can also offset the cost of pursuing affirmative litigation to generate liquidity, shifting legal departments from cost centers to value drivers.

Christopher Bogart, CEO of Burford Capital, said: “Businesses face significant challenges related to the global energy transition due to cross-border projects, differing legal frameworks and rapidly evolving policies. Additionally, long-term energy contracts may not keep pace with energy markets and technologies, resulting in conflicts among stakeholders. Burford’s latest research demonstrates the value of corporate finance for law, as legal finance helps companies manage the high costs of energy transition disputes and allows them to pursue meritorious claims without depleting resources.”

Burford’s research is based on a 2024 survey conducted by GLG and is supplemented by interviews with ten global energy transition experts conducted by Ari Kaplan Advisors.

The research report can be downloaded on Burford’s website.

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Community Spotlights

Community Spotlight: Jason Geisker, Head of Claims Funding Australia

By John Freund |

Jason Geisker is the Head of Claims Funding Australia (CFA), the litigation funding arm and wholly owned subsidiary of Maurice Blackburn Lawyers in Australia. He also serves as a Principal Lawyer at Maurice Blackburn’s Sydney office. With over 30 years of experience in commercial litigation and class actions, Jason has been recognized by his peers in the Doyles’ Guide rankings in Australia as a leading lawyer in commercial litigation/dispute resolution and class actions.

Jason holds a Master of Laws from the University of New South Wales. Since his admission to practice in 1996, he has been involved in several high-profile cases, including shareholder, investor, and consumer class actions. Notably, Jason led the Australian class actions against Volkswagen, Audi, and Skoda following the global ‘dieselgate’ scandal, resulting in settlements exceeding $170 million for over 100,000 Australian motorists.

In more recent years, as Head of CFA, Jason has collaborated with law firms across Australia and New Zealand to fund numerous commercial, insolvency, and class action claims. This includes a +NZD$300 million class action on behalf of approximately 3,000 people affected by the Southern Response insurance scandal following the Christchurch earthquakes in 2011. Under his leadership, CFA has achieved a 94% success rate in its funded cases. Jason is also the co-author of the Australian and New Zealand chapters of ‘The Third Party Funding Law Review’, an annual guide to the law and practice of third party funding, which is currently in its 8th edition.

Company Name and Description: Claims Funding Australia (CFA) is a litigation funding specialist with operations and offices throughout Australia. CFA funds a broad range of litigation in Australia and overseas. Backed by Maurice Blackburn, Australia’s leading class action law firm, CFA is part of the Claims Funding Group, providing third-party litigation funding services across Europe, Asia, North America, Australia, and New Zealand. Founded over a decade ago, CFA has been successful in 94% of its funded cases, recovering almost half a billion dollars for its clients. CFA leverages the expertise, resources, and reputation of Maurice Blackburn Lawyers, whose advisory team includes some of the most experienced class action, insolvency, and commercial litigators in Australia. With the solid financial backing of Maurice Blackburn, CFA brings extensive knowledge and experience in litigation and dispute resolution, offering dependable litigation finance. CFA works with a diverse range of clients, including liquidators, trustees, individuals, businesses, and government agencies, sharing Maurice Blackburn’s commitment to providing greater access to justice and leveling the litigation playing field against well-resourced defendants.

Company Website: www.claimsfunding.com.au

Year Founded: 2014

Headquarters: Melbourne, Australia, (with offices in Sydney, Adelaide, Brisbane and Perth)

Area of Focus: Civil, commercial, and insolvency litigation funding across Australia, and class action and commercial litigation funding in New Zealand and Canada.

Member Quote: “Define your goal, assess the cost, commit to the journey, and relish the rewards with peace of mind and no regrets.

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LitFin Highlights Momentum for Booking.com Class Actions

By Harry Moran |

Class actions focusing on anti-competitive behaviour by big businesses continue to provide ample opportunities for litigation funders to support claimants in their pursuit of justice, with European jurisdictions benefitting from a strong regulatory and oversight structure that seeks to clamp down on corporations abusing their dominant market positions.

In a LinkedIn post from LitFIn, the Prague-based litigation funder provides an update on the ongoing class actions brought against online travel agency Booking.com over its alleged anti-competitive practices. The allegations relate to the company’s use of pricing parity clauses, which have harmed hotels by preventing them from offering lower prices on their own websites or other online travel platforms. 

The travel company is now facing lawsuits across a number of jurisdictions in the European Union, with ongoing investigations in Italy, Sweden and France, following in the footsteps of regulators in Spain and Czech Republic who have already issued fines. One class action, brought by German hotels seeking compensation, has already begun proceedings in the Rechtbank Amsterdam.

Juraj Siska, partner at LitFin, provided the following statement: “The recent decision by Spain’s Competition Authority to fine Booking.com €413.2 million is a significant step forward in the fight against anti-competitive practices. Booking.com’s actions have affected market players across the EU, not only in Spain. Now is the time to end these practices and ensure compensation for damages already incurred.”

Concluding the post, LitFin emphasised their active involvement to support claimants seeking compensation in the Booking.com class actions, and encouraged any potentially affected parties to contact them.

Maturation of the Litigation Funding Industry Brings New Opportunities and Challenges

By Harry Moran |

As we enter the final months of 2024, it is only natural for industry commentators and analysts to lay out their observations on the state of litigation finance, seeking to understand how third-party funding has evolved this year.

A column in Bloomberg Law, written by former lawyer turned writer David Lat, examines the current state of the litigation funding industry and examines the changing face of the market, from its growing successes to the evolution of issues it faces. The column draws upon Lat’s time at the LitFinCon event hosted in September of this year, featuring insights from industry leaders who spoke at the conference.

One of Lat’s primary observations is the transformation of litigation funding from a fringe activity in the legal sector, to a mainstream stable that has transformed the way claimants and law firms pursue disputes. Lat highlights this change in attitudes within law firms, quoting Casey Grabenstein of Saul Ewing, who noted that his firm was somewhat reluctant to embrace litigation funding”, whilst Mayer Brown’s Michael Lackey emphasized that third-party funding “was just anathema”, a decade ago. Nowadays, these attitudes have largely been reversed, with Lackey himself noting that in today’s legal landscape “virtually every large law firm that does litigation probably has a funded case somewhere.”

Speaking to one of the prominent topics discussed at LitFinCon, Lat explains that with the startling growth experienced by the litigation finance market, the issue of the ‘commoditization’ of funding continues to be raised. Across the speakers at the event, Lat highlights that the general view of funders and other parties is that the industry has moved towards maturation rather than commoditization, with a lack of standardization across funding arrangements being absent across the industry. Looking to the future of third-party funding, Lat says that industry leaders continue to take a cautiously optimistic view, and quotes Mani Walia of Siltstone Capital who said, “ours is a young industry, and we need to make sure that there are no bad apples.”

In the spirit of this cautious attitude towards ‘bad apples’ and the potential for issues to arise, Lat also addresses the ways in which opposition to and criticism of the funding industry has changed with its maturation. Lat describes this transformation as being a move away from issues of legality to issues of disclosure, highlighting the ongoing debates among lawmakers and the judiciary as to what level of mandatory disclosure should be required for funding arrangements.

Department of Justice Files Statement of Interest on $16 Billion YPF Award

By Harry Moran |

The ongoing saga of the $16.1 billion award in the case brought by investors of the YPF oil and gas company, and funded by Burford Capital, has remained one of the most high profile instances of litigation funding in history. Whilst the Argentine government continues to appeal the award, the U.S. government has now formally offered its own opinion on one of the legal issues at stake in the dispute.

An article by Reuters covers the latest development in the Argentina YPF case, as the U.S. Department of Justice submitted a statement of interest arguing against the seizure of Argentina’s shares in the oil and gas company, as part of the enforcement of the $16 billion judgment. The letter, sent to U.S. District Judge Loretta Preska in Manhattan, appeared to disagree with Burford Capital’s position that there was a commercial activity exception to the Foreign Sovereign immunities Act, and that the law was not intended to disregard immunity for foreign sovereign property. This argument seemed to reflect the DOJ’s position that carving out such an exception to immunity would create a parallel risk for U.S. property in foreign jurisdictions.

In response to media reporting on this latest development, Burford Capital issued a statement that argued the DOJ’s letter only addressed “a narrow question of law in relation to the enforcement of judgements.” Furthermore, Burford argued that the filing “does not reflect DOJ’s taking any broader position on the overall case of the enforcement campaign.” The press release from Burford Capital can be read in full below:

“Burford Capital Limited, the leading global finance and asset management firm focused on law, has noted inaccurate media reporting and subsequent market reaction to an expected court filing last night by the U.S. Department of Justice ("DOJ") in the Petersen and Eton Park matters. The filing in the U.S. District Court for the Southern District of New York restates DOJ's position on a narrow question of law in relation to enforcement of judgments. The filing pertains to one motion filed in the Petersen and Eton Park matters as part of the overall, ongoing effort to enforce the judgment against the Argentine Republic. The filing does not reflect DOJ's taking any broader position on the overall case or the enforcement campaign; indeed, DOJ has previously taken the position that pursuing Argentina in the US courts for its breach of contract in this matter was appropriate, and DOJ has not made any filing at all on the pending appeal (and the time to do so has passed). In its filing, DOJ took the view that Argentina could not be required by a U.S. court to move property presently located in Argentina into the United States so it could there be attached for creditors under New York law, which is an unsettled legal issue. The DOJ view is not binding on the court and further briefing and proceedings will ensue. The Company will provide a further update on the Petersen and Eton Park matters during today's earnings call.”