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Woodsford Funds Class Action Against IG Markets Over CFD Products

Class actions remain one of the most powerful tools for individuals to seek legal redress against major corporations, especially when it comes to the world of retail investors who are engaging in a market that is significantly imbalanced against them. In another example of this trend, we have seen a second funded class action brought against IG Markets for its sale of derivative products to Australian retail investors. In a recent post, Woodsford announced that it is funding a class action against IG Markets Limited and IG Australia Pty Ltd (IG), with the lawsuit focused on allegations that IG misled retail investors in its sale of contracts for difference (CFDs). The class action, which was filed in the Federal Court of Australia on Monday, focuses on IG’s marketing and offering of these derivative products between 4 May 2017 and 11 August 2023. This is not the first class action that has publicly announced support from a third-party funder, with LFJ reporting in May that Omni Bridgeway was funding a similar action brought by Piper Alderman against IG Markets over the sale and marketing of CFDs. Alex Hickson, senior investment officer at Woodsford, stated that the funder is “committed to backing this action against IG on behalf of those people who have suffered loss trading these risky and complex products.” He also emphasised that the Australian Securities & Investments Commission (ASIC) has already analysed these derivative products and “has recognised the harm they can cause retail investors.” With funding from Woodsford, the class action’s applicant is being represented by Australian law firm, William Roberts Lawyers. Ding Pan, principal at William Roberts stated that the firm is “firmly committed to recovering compensation for retail investors” and emphasised that IG had sold products which “are highly risky and involve significant and non-transparent fees.”

Slater and Gordon Agree to £33MM Committed Facility with Harbour

Leading UK consumer law firm Slater and Gordon has agreed a £33 million committed facility with litigation funder and lender to law firms, Harbour, in what is believed to be one of the largest lending deals in the sector this year. Slater and Gordon firm will use Harbour’s capital to invest in developing its consumer legal services teams, and to fund a substantial book of clinical negligence and other personal injury claims, consistent with its strategy to be one of the UK’s leading provider of personal injury and related services. Harbour is the world’s largest privately owned litigation funder. Through its increasingly close strategic relationships with law firms, Harbour has broadened its investment appetite over the last 18 months to include the provision of lending and credit facilities to law firms, supporting them in the execution of their growth plans.  Unlike some traditional lenders, funds can be used for multiple purposes, which gives the leaders of multi-strategy law firms flexibility in executing projects involving multiple workstreams or multiple practice areas. Nils Stoesser, Chief Executive Officer of Slater and Gordon, said: “The ethos of the entire Slater and Gordon team is to support our clients by delivering an exceptional service across a whole range of consumer law issues.  We have been looking for a financial partner to help us capitalise on the next stages of the firm’s growth, and we are we are delighted to have Harbour’s support and confidence in our future.” Elizabeth Comley, Chief Operating Officer of Slater and Gordon, said: “The facility we have agreed with Harbour gives us access to stable capital over several years which we can use to make substantial investment in our core consumer legal services businesses.  We have big growth ambitions for our personal injury, clinical negligence, and other practice areas, where we know we have a competitive advantage. This new facility allows us to realise those ambitions, and in Harbour we’ve found a natural partner who really understand the needs and business of law firms.” Ellora MacPherson, Managing Director and Chief Investment Officer at Harbour, added: “Harbour is pleased to be supporting Slater and Gordon with this new credit facility. We are excited about their future growth plans as reflected by this significant investment.  We look forward to our partnership together.” Harbour has recently provided credit facilities to Bamboo Group and to Rothley Law.  A team from FRP Advisory led by Andrew Dimmock were instructed by Slater and Gordon to assist with sourcing a debt facility. Slater and Gordon’s previous working capital facility from VFS Legal is now replaced by this facility from Harbour. About Slater and Gordon Slater and Gordon is one of the UK’s largest law firms. With a team of highly skilled and experienced lawyers, paralegals, medical experts, rehabilitation co-ordinators and support staff, Slater and Gordon provide comprehensive legal services across a number of specialties. Headquartered in Manchester with 11 offices across the UK, Slater and Gordon specialises in consumer legal services, including serious injury, clinical negligence, abuse law, court of protection, employment and family law matters. Slater and Gordon has been recognised by multiple independent legal guides such as Chambers and Legal 500 and is highly specialised in representing individuals who’ve been affected by life-changing and serious injuries. About Harbour Harbour is the world’s largest privately owned litigation funder, which now also lends and provides credit facilities to law firms. Since launching in 2007, the business has been at the forefront of the growth and development of the global funding market. In the summer of 2023 it also announced facilities for Rothley Law and Bamboo Legal Services. Headquartered in London, the business funds cases across the globe ranging from one-off disputes valued from circa. £1m to portfolios of multi-million-pound cases, as well as loans and credit facilities for law firms with no upper limit. Harbour is a founder member of the Association of Litigation Funders (ALF), a member of the International Legal Finance Association (ILFA). Ellora MacPherson is Managing Director and Chief Investment officer.

LFJ Member Leverages Informal Introductory Services to Finance ESG Claim

Litigation Finance Journal is well-regarded as the leading publication covering the global legal funding sector, but what is perhaps less-well known is that LFJ also serves as a digital hub for industry stakeholders to connect, via our informal introductory services. A recent example illustrates the impact that LFJs access to the global funding community can have, as Brazilian attorney and activist Daniel Cavalcante leveraged our introductory services to raise funding for a claim on behalf of Indigenous communities in the Amazon.  In a post by No Impunity on LinkedIn, the impact litigation funding platform announced that it would be collaborating with Daniel Cavalcante, a lawyer who has been fighting for the rights of indigenous communities in the Brazilian Amazon. No Impunity stated that it would be funding a lawsuit “that directly benefits indigenous communities, taking real steps towards justice”, highlighting the synergy between Cavalcante’s goals and their mission to finance litigation that fights back against climate and human rights abuses by corporations. Yanis Lunetta, Co-Founder and Co-CEO of No Impunity, praised LFJ's global network of litigation funding stakeholders: "Through LFJ's network, No Impunity was introduced to Daniel Cavalcante. This connection proved transformative, enabling grassroots fundraising for an ESG claim. Daniel's commitment, backed by No Impunity and combined with the trust LFJ instilled, illustrates a dynamic synergy in financing legal action to achieve corporate accountability." Aurelia Le Frapper, Co-Founder and Co-CEO of No Impunity, added: "Litigation Finance Journal played a key role in our mission to democratize impact litigation. They had an essential part in connecting us directly with Daniel Calvalcante, representing Brazilian communities facing substantial socio-environmental harms.This connection paved the way for No Impunity to fund the investigation phase of this legal process. As we prepare for our public launch event at UCL on 25 September to present our platform and start fundraising for this first case, we express our gratitude to LFJ for its essential contribution in advancing impactful legal initiatives." In his own post on LinkedIn, Cavalcante expressed his excitement for the collaboration with No Impunity, saying that “the recognition of my work as a lawyer, representing different associations and tribes, is a source of inspiration to continue facing socio-environmental challenges.” As LFJ reported back in February, Cavalcante has been actively campaigning for support from funders and law firms to support lawsuits against large international corporations harming the people and the environment of the Amazon.  No Impunity stated that it would reveal the details of the case on August 25, and encouraged any interested parties to get in touch.
The LFJ Podcast

Episode 76: Chris Garvey, Stonward

Hosted By Chris Garvey |
In this episode, we spoke with Chris Garvey, member of the Board of Investments at Stonward. Chris discussed the litigation funding market in Spain, the challenges and opportunities for funders there, what cases Stonward looks to finance, implications of the Voss report, and much more! [podcast_episode episode="11733" content="title,player,details"]

Litigation Funder LegalPay Launches Online Dispute Resolution Platform

In a bid to decongest the Indian legal system, LegalPay, India’s largest litigation financier has launched an Online Dispute Resolution (ODR) wing called Bharat Dispute Resolution (BDR). BDR is a revolutionary service that will help businesses across the sectors, fintech startups, banks, and NBFCs recover their dues efficiently and manage their portfolio better. BDR is a digital platform that leverages artificial intelligence, data analytics, and legal expertise to resolve disputes and recover dues in a fast, cost-effective, and hassle-free manner. Through its cutting-edge technology, which includes automation of bulk notices, tracking responses, administration of stamp duty, and data repository for cases intertwined with the legal services of experienced professionals, it offers a holistic and comprehensive solution for all legal woes. "We are excited to unveil Bharat Dispute Resolution, an innovative solution poised to redefine the landscape of dispute resolution and tackle the problem of unpaid account receivables”, said Kundan Shahi, Founder & CEO of LegalPay. BDR leverages the industry's expertise in online arbitration and mediation and its network of over 5,000 lawyers and arbitrators across the country to provide fast, fair, and cost-effective solutions for resolving disputes arising from unpaid loans, payment defaults, and other issues. BDR expects to manage 1,00,000 cases by the end of December this year. “It [BDR] also reduces the burden on the judiciary and promotes alternative dispute resolution methods. We are excited to launch this service and help millions of businesses across India. We are confident that BDR will continue to grow and scale in the coming years and become the preferred choice for dispute resolution across the globe”, Shahi added. With its new wing, LegalPay aims to empower its clients to focus on growing its business, while reducing their bad debts, improving their cash flow, and confidently growing their businesses. About LegalPay:  LegalPay is a pioneer in the litigation funding space in India. Since its inception in 2019, LegalPay has underwritten over 30,000 cases across various sectors, including e-commerce, fintech, ed-tech, healthcare, logistics, and manufacturing. LegalPay aims to democratize access to justice and make legal services affordable, accessible, and transparent for everyone. Currently managing over INR 2,600 Crores in claims under management, LegalPay expects to manage INR 5,000 Crores by the end of this year.

TRGP Capital Backs Covid Lawsuits Against UK Universities

Among those sectors impacted by Covid-era policies and restrictions, the education sector experienced an immediate and tangible change, with universities pivoting to remote teaching services. As LFJ has previously reported, litigation resulting from these policies is already ongoing with funders and law firms eager to represent students who argue they did not receive the services they paid for. Reporting by Bloomberg Law provides the latest details around the numerous lawsuits being brought on behalf of students against 18 UK universities, which allege that these institutions failed to deliver the quality of services that were advertised when the students enrolled. According to the article, US-based litigation funder TRGP Capital is providing financing for approximately 140,00 claims. Whilst Bloomberg’s reporting does not provide any details on the amount of litigation funding provided, a Financial Times article from last month revealed that TRGP Capital had committed at least £13 million in financing to support these lawsuits. The claims are being led by law firms including Asserson Law Office and Harcus Parker, with an active marketing campaign underway to reach more university students who could be brought on as claimants.  Shimon Goldwater, partner at Asserson, emphasized the importance of TRGP’s support: “there needs to be a funder if it’s going to be able to go to trial, so it was always contingent on getting some funding.” Goldwater explained that claims by undergraduate students could be valued at £5,000 each, meaning that if successful, the overall litigation could result in a settlement worth hundreds of millions.  

LF Legal Finance SE Acquires Option on Major International Case

The Frankfurt-based litigation financing company LF Legal Finance SE, through its subsidiary Legal Finance International GmbH (Düsseldorf), has acquired an option to finance an international tort case with a value in dispute of up to EUR 1.0 million. If the case is financed and won, Legal Finance expects significant cash inflows. The option agreement was signed on 11 August 2023 and has a term of 2 months. It gives Legal Finance the exclusive option to fund the litigation with a value of approximately EUR 1.0 million. Subject to funding, Legal Finance will decide whether to exercise the option within the term of the agreement. The financing of further claims and ancillary litigation arising from related matters with a further cumulative amount in dispute of up to a further EUR 1.0 million is currently being negotiated. The complex international case involves several jurisdictions, including non-European jurisdictions, and is ripe for trial. The defendant in the main action is solvent and reachable. The issues in the case include damages and corporate law. As usual, Legal Finance is only involved in the funding of the proceedings and is not intervening in the litigation. The proceedings are conducted solely by the plaintiff through experienced litigators. Any cost-increasing measures will be taken in consultation with Legal Finance. LF Legal Finance SE is in the process of further clarifying the ancillary litigation and will involve external lawyers in a more detailed examination of the prospects of success of the claims. In addition, other sources will be consulted to verify the solvency of the defendants in the ancillary proceedings.

Oliver Gayner Departs Omni Bridgeway for William Roberts Lawyers

An article by The Global Legal Post covers the news that Oliver Gayner, Omni Bridgeway’s co-managing director and chief investment officer for Asia-Pacific, has left the funder to join William Roberts Lawyers. The Australian law firm is a boutique outfit which specialises in dispute resolution, litigation, and property transactions.  In a post on LinkedIn announcing the move to William Roberts, Gayner stated: “After many years working closely with Bill Petrovski and Robert Ishak as a funder, I know first hand the quality of the team they have built, and it's a very exciting time to be joining the firm and adding my experience to the class actions and commercial litigation practices. I'm particularly looking forward to working with the firm's valued clients, including our many friends in the funding industry.” According to a press release on William Roberts’ website, Gayner “will significantly bolster William Roberts’ class actions and commercial litigation offering.” Gayner’s move comes at the same time that the firm brings in a new hire to its Brisbane office, announcing the arrival of Fred van Reede, who will be adding valuable strength to its insurance and commercial litigation services.

Combining ATE Insurance and Funding to Strengthen In-House Counsel

Litigation funding and litigation risk insurance, such as after-the-event (ATE) insurance, have both experienced significant growth in recent years as litigants look for tools to offset risk and ensure that they have the resources to see the legal process through to a conclusion. Together, third-party funding and ATE insurance represent a potent combination that may be of great value, especially for in-house legal teams which face increasingly strict budgets. In an article for Legal Futures, David Pipkin, non-executive director at Temple Legal Protection, makes the argument for why in-house counsel should avail themselves of the services provided by litigation funders and ATE insurers. Pipkin argues that the combination of these two powerful tools can “cover the costs of legal action and mitigate the financial risk of pursuing legal matters”, thereby maintaining a legal department’s ability to pursue meritorious litigation without incurring excessive risk. Pipkin highlights that whilst commercial litigation lawyers have been relatively quick to adopt the use of these services, he has seen a notably slower pace from those lawyers working in-house. He suggests that the reason for this hesitant approach may be the assumption from legal teams that taking on funding will lessen their control over the litigation, or that there is some perceived weakness in taking on ATE insurance coverage. In contrast, Pipkin points out that “ATE insurance not only transfers the risk of litigation but the organization gains an experienced litigation insurance partner.” In an environment where “most organizations don’t have large pockets to fund litigation”, Pipkin suggests that third-party funding can be a useful method for offsetting those budgetary concerns.