All Posts

August 9, 2022

Claimants are understandably cautious when engaging with third-parties during litigation due to the sensitive nature of the information they discuss, and a need to maintain a careful eye on any privileged communications they undertake. However, it is equally important for funders to have a detailed and complete understanding of the case they’re financing and any particularly sensitive elements of the proceedings that could affect the outcome. In a piece of analysis for Sentry Funding, litigation finance adviser and broker, Miko Burzec, provides a helpful guide for clients and funders as to best practices for maintaining the security of privileged information during cases in England. In particular, he states that while legal advice privilege will protect litigants when discussing matters of legal advice in terms of the client’s rights and liabilities, this will not extend to broader strategic advice or commercial matters. Therefore, Mr Burzec highlights the need for confidentiality and non-disclosure agreements between potential clients and funders, even before any funding agreement is signed and finalised. This will allow funders and claimants to maintain an open and informed dialogue about key background or ongoing details in the case, such as trade secrets, without risking disclosure at a later date. This combination of caution and communication is the key to a productive relationship between the client and funder, whilst avoiding any increase in potential risk for clients.

Commercial Legal Innovation

August 9, 2022

When it comes to patent infringement, the balance of power has been so heavily in the favour of companies doing the infringing, that many do not fear any sort of reprisal and will often choose to eschew paying for the license. Having courts invalidate patents, and the lack of damages that can actually be gained by an inventor through an infringement lawsuit, have put individual creators at a serious disadvantage. However, litigation funding is a unique asset for these patent holders to reassert control. Writing in Bloomberg Law, Jonathan Barbee, an attorney at MoloLamken, examines the utility of third-party funding for inventors to redress this imbalance by not only giving patent holders the financial resources to execute a lawsuit, but also by reducing the risk that a poorly-handled lawsuit might hasten the invalidation of the patent. With the capital to see proceedings through to the final conclusion, and to hire the kind of legal counsel that can go toe-to-toe with those instructed by global corporations, inventors will stand a fighting chance. Mr Barbee also points out that this should not just be a consideration for individual innovators, but also for universities and startups, which may see their intellectual property appropriated by industry leaders. He points to the recent Columbia University and CalTech cases as examples of institutions protecting their patents, where they have utilised litigation funding as a method for strengthening their position.

Public

Commercial People Moves

Global Law Firm announce expansion and name change

August 8, 2022

Global law firm PGMBM will now be known as Pogust Goodhead after a succession of litigation victories.

Following a landmark ruling ensuring mining giant BHP will face their day of reckoning in the English courts over the Mariana dam disaster, the law firm will also be expanding their services in Brazil.

With the addition of a new office in Rio de Janeiro, Pogust Goodhead plans to continue spearheading environmental litigation in Brazil, as well as around the world through offices in the Netherlands and United States.

The expansion also includes plans for a new legal process outsourcing centre based in Governador Valadares, Minas Gerais, Brazil to help process and service clients worldwide – which will bring over 300 jobs to the area.

Alongside the expansion into Brazil, the firm is growing its global securities department, with a new office in San Diego – headed up by experienced securities litigator Takeo Kellar. Enhancing this practise area aligns with Pogust Goodhead’s commitment to bringing shareholder engagement and litigation solutions to investors around the world.

The news comes after a series of historic settlements including on behalf of 15,000 claimants in the Volkswagen Group Litigation in May 2022 and 16,000 victims of the British Airways Data Breach in 2021.

A partnership and £100m funding deal with North Wall Capital was also recently announced as the largest investment in a UK claimant law firm to date.

The ongoing investment in Brazil will also see the addition of 20 new Brazilian lawyers in the coming weeks, after a series of UK hires.

Pogust Goodhead has recently seen the recruitment of C-Suite leaders Chief Operating Officer Alicia Alinia and Chief Financial Officer Jash Radia, bringing decades of experience in strategic leadership across the business.

Global Managing Partner and CEO Tom Goodhead said:

“In the past twelve months, we have successfully concluded group litigations against British Airways, Volkswagen and just last month we secured an extraordinary victory against the largest mining company in the world, BHP.

“Today we are moving to the next chapter. As the business continues to grow, it is vital that we make changes to ensure that we have a strong, reliable, and sustainable infrastructure to facilitate our ambitions to transform group litigation globally.

“Our Brazilian cases have always been the driving force of the firm and with a new office in Rio we hope to build on the great progress we have made with cases against defendants such as BHP and Tuv Sud.

“Most importantly we want to ensure our clients are given an even better experience and to ultimately ensure we represent their desire for justice, continuing to fight the good fight across all our litigations.”

Chairman Harris Pogust added:

“We are delighted to be building on the successes of recent years in what we feel is the next crucial step for our firm. I am beyond proud to have my name standing big and bold next to my amazing partner, Tom Goodhead. As we continue to grow the firm, brand recognition becomes an even more important item in our growth. With this name change we believe the brand Pogust Goodhead will be one of the most recognizable in the legal landscape.

“There is no law firm out there doing the cutting edge, ground-breaking work on behalf of those who are in most need of legal representation than Pogust Goodhead, and these changes will ensure we take things to the next level.

“We are beyond proud of the talented people we have on board at the firm and the incredible work they do every day, championing justice for our clients.

“We are only just getting started.”

Consumer Fundraising

August 4, 2022

Investors continue to see litigation financing as a lucrative investment, not only seeking returns from individually funding cases, but also through investments in leading funders. Experity Ventures is the latest beneficiary, as the funder announced it has secured a $32 million corporate note, in a transaction that involved a number of high-level institutional investors. In the company’s press release, founder and chairman of Experity Ventures, Joseph Greco, stated that this demand from institutional investors will allow Experity to see continued growth and pursue a portfolio of litigation funding claims that focuses on pre-settlement and medical funding cases. In the six years since it was founded, Experity has provided more than $380 million in funding to over 65,000 claimants, and CEO Ryan Silverman highlights the value of this capital for the firm continue expanding and execute its operations. For this transaction, Brean Capital acted as the sole placement agent and financial adviser to Experity.

Public

Announcements Commercial People Moves

Omni Bridgeway expands its investment team in Canada with Laura Scheim

August 3, 2022

Legal finance company Omni Bridgeway is expanding its Canadian operations with the hire of Laura Scheim as associate investment manager and legal counsel. Based in our Montreal office, Laura brings expertise in commercial and tax litigation, and a background that includes clerking at the Supreme Court of Canada and the Quebec Court of Appeal.

Before joining Omni Bridgeway, Laura practiced with the top ranked litigation group at Osler, Hoskin & Harcourt LLP. She adds to our strong investment team in Canada comprised of Paul Rand and Nick Tzoulas who joined Omni Bridgeway from Blake, Cassels & Graydon LLP, Naomi Loewith who joined from Lenczner Slaght LLP, Geoff Moysa who joined from McMillan LLP, Pierre-Jerome Bouchard who joined from McCarthy Tétrault LLP, Annie Lesperance who joined from Cabinet Yves Fortier and George Hendy, formerly head of litigation at Osler, Hoskin & Harcourt LLP in Montreal, who serves as Senior Advisor in Quebec. Laura will assist the Canadian team in responding to the continued growth in demand for corporate and commercial litigation funding and growing interest in legal finance management. With nearly a decade of sophisticated litigation experience and top-flight academic credentials, Laura is well positioned to help Omni Bridgeway assess and manage the funding of meritorious claims. Laura has two law degrees and an undergraduate degree from McGill, and an MSc in Human Rights with a focus on international law from the London School of Economics. Before entering legal practice, Laura clerked for Justice Moldaver of the Supreme Court of Canada and Justice Hilton of the Quebec Court of Appeal. Laura is fluent in English, French and Hebrew. Omni Bridgeway is delighted to welcome Laura to the team. Omni Bridgeway expands investment team in Canada with Laura Scheim Litigation finance firm Omni Bridgeway is expanding its Canadian operations with the hiring of Laura Scheim as associate investment manager and legal counsel. Based in our Montreal office, Laura will bring her expertise in commercial and tax litigation, as well as experience that includes clerking at the Supreme Court of Canada and the Quebec Court of Appeal. Prior to joining Omni Bridgeway, Laura practiced in the top-ranked litigation group at Osler, Hoskin & Harcourt LLP. She joins our strong Canadian investment team of Paul Rand and Nick Tzoulas who joined Omni Bridgeway after practicing at Blake, Cassels & Graydon LLP, Naomi Loewith who joined Omni Bridgeway after practicing at Lenczner Slaght LLP, Geoff Moysa who joined Omni Bridgeway after practicing at McMillan LLP, Pierre-Jérôme Bouchard who joined Omni Bridgeway after practicing at McCarthy Tetrault LLP, Annie Lespérance who joined Omni Bridgeway after practicing at Yves Fortier and George Hendy, former head of the litigation department at Osler, Hoskin & Harcourt LLP in Montreal, Laura will help the Canadian team meet the continued growth in demand for corporate and commercial litigation funding and the growing interest in managing litigation funding. With nearly a decade of complex litigation experience and advanced academic credentials, Laura is well positioned to help Omni Bridgeway assess and manage the funding of meritorious claims. Laura holds law degrees and an undergraduate degree from McGill University, as well as a master's degree in human rights with a specialization in international law from the London School of Economics. Prior to entering legal practice, Laura articled with Justice Moldaver of the Supreme Court of Canada and Justice Hilton of the Quebec Court of Appeal. Laura is fluent in English, French and Hebrew. Omni Bridgeway is delighted to welcome Laura to the team.

Public

Announcements Consumer

High Rise Legal Funding Focuses on Car Accident Pre-Settlement Funding in 2022

August 3, 2022

Due to the increasing number of vehicle accidents and related lawsuits, High Rise Legal Funding announced they are focusing on car accident pre-settlement funding in 2022. More than a year-and-a-half ago, roadways emptied as the pandemic closed the country and people stayed home. However, according to National Highway Traffic Safety Administration (NHTSA) Traffic Safety Facts, those who drove their vehicles engaged in more dangerous behavior. Law enforcement and traffic safety experts reported a high number of motorists driving too fast, under the influence of drugs and alcohol, or failing to buckle up. As a result, NHTSA estimates reveal 38,680 people were killed in 2020 vehicle crashes: a fatality rate not seen since 2007. Additionally, approximately 20,160 people died in motor vehicle crashes during the first half of 2021. The NHTSA reported that this is the most significant six-month increase recorded and the largest estimated number of fatalities during that period since 2006. Those numbers are only projected to get worse as the pandemic lockdown tapers off and more people feel safer in their cars than taking public transportation. In addition, legal experts attribute many car-related injuries to negligent drivers, increasing personal injury lawsuits claims. About Pre-Settlement Legal Funding High Rise Legal Funding is aware that those struggling with COVID-related work issues will find it even more challenging to pay their bills as they pursue a car-accident-related personal injury claim. A successful lawsuit settlement is intended to help victims recover from financial and emotional damages; however, a resolution on their claim could take months or years. The financial pressures victims face can affect their ability to receive fair compensation from the at-fault party. Therefore, High Rise Legal Funding is proud to provide pre-settlement financing to help plaintiffs when they need it the most. Litigation financing gives car accident injury victims the funds to replace lost wages and cover mortgage, rent, medical bills, childcare, and vehicle repair bills while waiting for a case resolution in 2022. Unlike a regular bank loan, car accident legal funding includes a fast, simple approval process with no interest. And because the IRS classifies legal financing as nonrecourse, it does not have to be repaid, even if they lose their lawsuit and fail to win compensation. About High Rise Financial High Rise Financial is a limited liability company based in Los Angeles that provides up to $1 million in legal funding to qualified accident victims nationwide. Founders Mark Berookim and Michael Berookim established the top-rated firm to assist lawsuit plaintiffs in paying their expenses while recovering and during litigation. According to the Berookims, “High Rise seeks to provide every personal injury accident victim with a fair chance. As a result, our clients are better able to navigate their legal case without being in a rush to settle for less than they deserve.” For more information, please visit www.highriselegalfunding.com.

Commercial Deals

August 3, 2022

Trademark litigation has traditionally been an area that has disproportionately favored defendants who are large corporations or industry giants, due to the sheer weight of financial and legal resources they are able to bring to bear. However, recent trends have demonstrated that smaller companies are able to redress that balance by utilizing litigation financing providers who are willing to fund proceedings where legitimate trademark disputes occur. In an article by Managing IP, industry figures highlight that while this is not a silver bullet, when litigation funding is deployed intelligently, it can be a useful asset for litigants. Managing partner of law firm Ellis George Cipollone, Keith Wesley, suggests that the biggest challenge for lawyers seeking funding is having access to enough details about the defendant’s position to make a viable case to potential funders. He points out this can be partly alleviated by using witnesses and publicly accessible information to strengthen their proposition. On the side of funders, Marla Decker, managing director at Lake Whillans Litigation Finance, notes that not only do financiers consider the strength of the case being brought, but importantly, the scale of damages that can be recouped against the costs for seeing the proceedings through to a successful conclusion. However, while Decker acknowledges that not all cases will be attractive to funders initially, there are always opportunities for claimants to seek funding later in the process, once they have established a more solid evidence base.

Commercial

August 3, 2022

When selecting the right funder to pitch their case, litigants and counsel are looking for the capital to fund proceedings, as well as the right partner who can provide valuable expertise and strategic guidance for their case. As a result, top litigation funding outfits are offering financial resources, as well as the support of former litigators, who bring a wealth of experience to the matter. As profiled by Lawdragon, Stuart Grant, co-founder and managing director of Bench Walk Advisors, is a leading example of this, with 30 years of experience in securities litigation. Mr Grant talks about his firm’s approach as one that values sharp due-diligence, speed and a certainty of commitment to their clients, who require a funder that is going to be with them every step of the way. Discussing Bench Walk’s strategy for selecting cases, Mr Grant highlights that they only take on 5% of the cases brought to them, and while they don’t instruct potential clients on what to do, through this scrutiny, the firm has found that it strengthens the case of claimants even when Bench Walk does not invest. This approach not only protects Bench Walk from weak cases, but has developed a reputation with clients where even if they are not approved for funding on a particular case, they may still come back to the firm for future cases with a stronger foundation. Speaking to the state of the industry, Mr Grant suggests that while the pandemic did not noticeably hurt the availability of cases or the length of time it took disputes to resolve, the increased demand has more to do with enhancing understanding from law firms as to the benefits of third-party funding, rather than external factors.

Commercial Deals

August 3, 2022

In an economic climate that has continued to demonstrate instability and uncertainty for private investments, the avenue of investment in litigation funding represents a viable alternative to traditional asset classes. Litigation finance represents not only an opportunity to add increased diversity to an investor’s portfolio, but also provides an investment vehicle with the potential to reap surprisingly high returns on the initial investment. Recapping a recent roundtable by the law firm Macfarlanes, Private Debt Investor highlights the increasing growth in the litigation funding industry as representative of the sustained appetite of investors. Of interest to funders is the fact that this pool of investors includes not only established asset management firms, but also other institutional investors such as sovereign wealth funds and also retail high-net-worth investors. Macfarlanes also predicts that the industry’s growth, especially in the UK, is far from its peak. However, caution is advised, as investments in litigation are inherently risky and cannot be assessed through the usual financial and economic indicators. Macfarlanes stressed the key point that ultimately, while funders will usually only fund cases with a high probability of success, the fact that the outcome ultimately rests in the legal system carries additional risk. Additionally, whilst there are no immediate signs of a regulatory crackdown, investors should consider that legislators will be keeping a close eye on these activities and further reform is not out of the question.

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All Articles

Funder Highlights the Importance of Privileged Communications

Litigation Funding Levels the Playing Field in Patent Infringement

Global Law Firm announce expansion and name change

Experity Ventures Closes £32 Million in Financing from Institutional Investors

Omni Bridgeway expands its investment team in Canada with Laura Scheim

High Rise Legal Funding Focuses on Car Accident Pre-Settlement Funding in 2022

Trademark Disputes are Challenging, but Offer High Returns for Funders

Bench Walk Founder Highlights Speed and Certainty as Core Offerings

Macfarlanes Sees a Broad Array of Investors Engaging with Funders

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