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Commercial Deals

Litigation Funders are Being Courted to Finance Russian Asset Seizure Cases

In a new instance of litigation finance being tied to high-profile and newsworthy events, the possibility of leveraging third-party funding to finance claims against high-net-worth Russian individuals has been raised. Reporting from Bloomberg sheds light on the news that lawyers from McCue Jury & Partners and Mishcon de Reya are pursuing the possibility of funding their proceedings using capital from outside financiers. These claims aim to provide financial restitution to Ukrainian citizens who have suffered during the Russian invasion of their country, which began in February of this year. Speaking for Mischon de Reya, Ben Brandon, a partner for the firm, says that while this would be a landmark use of third-party funding, they have not yet secured guarantees that there are funders who have an appetite for this unique set of cases. Bloomberg’s own reporting reveals that funders may be hesitant due to the unlikelihood that any successful claims could be enforced, and therefore the probability of seeing a return on investment would be in serious doubt. The coalition of lawyers pursuing these actions, the Ukraine Justice Alliance, represent an alternative approach for governments that have established sanctions on Russian individuals, but have been unable to seize the majority of the targeted assets. One of the founding partners at McCue Jury & Partners, Jason McCue, states that there is at least $200 billion worth of potential assets they could pursue, and that such claims would achieve real compensation for working-class Ukrainians.
Announcements Commercial

Experity Ventures Ranks # 682 on the 2022 Inc. 5000 Fastest Growing Private Companies

Today, Inc. Magazine revealed that Experity Ventures is # 682 on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy's most dynamic segment—its independent businesses. Microsoft, Facebook, Under Armour, Patagonia, Chobani and many other well-known names gained their first national exposure as honorees on the Inc. 5000. Joseph Greco, Founder and Chairman, commented, "We are proud and honored to be recognized for a second consecutive year as part of this prestigious list. Our three-year revenue growth rate of 914% is testimony to us executing our vision every day. Congratulations to our dedicated and talented team and we look forward to continuing our amazing innovation and growth story."  Ryan Silverman, CEO, added "We are very excited to be recognized again and be part of this impressive class of great companies. Experity Ventures growth and performance is a result of a continued focus and relentless execution from our outstanding team. Along with our valued partners, we will stay committed to this ideal every day." The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, global events and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Together, those companies added more than 68,394 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000. The top 500 companies are featured in the September issue of Inc. magazine, which will be available on August 23.  "The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated," says Scott Omelianuk, editor-in-chief of Inc. "Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today."
Case Developments Commercial

Audio: Which? vs. Qualcomm is Shaping ATE Insurance Innovation 

Simon Latham (Head of Competition at Augusta Ventures) was profiled by the Law Society discussing insurance-related concerns regarding Which? vs. Qualcomm. Specifically, Qualcomm's approach of asking for a judge to approve a Which? ATE insurance scheme.  An audio clip of Mr. Latham's Law Society comments have been posted to LinkedIn. Latham describes an ATE scenario where Qualcomm is asking Which? to produce additional information concerning its ATE policy.  Questions from Qualcomm include asking for additional ATE provisions in the instance of any Which? misrepresentations. Many litigation financiers find Qualcomm's ATE approach to be unorthodox. Click here to hear the clip, and learn more about Mr. Latham's insights 
Commercial Regulatory Issues

The Canadian Bar Association on ESG Litigation Finance

National Magazine has published new research into the risky market of ESG fraud. The Canadian Bar Association’s National Magazine periodical dives deep into the litigation finance opportunity associated with 'green washing.'  National Magazine predicts an upcoming tsunami of ESG litigation will soon enter Canadian courts.  Paul Rand, (Chief Investment Officer at Omni Bridgeway), says that Omni Bridgeway plans to offer greater access to the Canadian legal system in a bid to tackle ESG litigation. Mr. Rand goes on to say that quality ESG litigation can lead to high legal costs. Omni Bridgeway is researching potential ways to create an ESG Finance Fund to take advantage of valuable ESG litigation opportunities.  Furthermore, Rand alludes to Omni creating bespoke techniques for evaluating an ESG risk management business strategy.
Commercial Deals

North Wall Capital Finds Strong Value Proposition in ESG Litigation

The importance of ESG cases for litigation funders has become more and more apparent over recent years, and in 2022 alone, we have seen several developments indicating that this trend is not set to slow down. North Wall Capital has been proactive in terms of using litigation funding to back claims against corporations violating environmental standards and protections, most recently providing $100 million in capital to Pogust Goodhead to fight these cases. Speaking with New Private Markets, the chief investment officer and founder of North Wall, Fabian Chrobog, argues that this avenue of financing lawsuits is a key method for ensuring multinational companies face accountability for the environmental harm they may cause. Discussing the agreement with Pogust Goodhead, Chrobog highlighted that this financing is not committed to a specific piece of litigation, but rather a pool of capital that can be leveraged to pursue any case that is ESG-focused. When factoring in the risk of each funding agreement, Chrobog argues that ESG cases are beneficial, as they maintain a higher probability of settlement than most case types, resulting in a strong financial return for the funder. Furthermore, by lending a single sum of capital to a law firm like Pogust Goodhead, North Wall diversifies its claims investment and avoids relying on an individual case for a positive outcome.
Commercial Regulatory Issues

Legal Scholar Cites Lack of Transparency as Key Flaw in Litigation Funding

While litigation funding has been a great boost to those seeking access to justice, the system is not without its critics or those who have raised concerns. One area that has recently come under the spotlight is the issue of transparency in funding. Some commentators in the US are comparing this to the lack of transparency in US political donations. Writing for Tuscon, Xavier Segura, a legal scholar and higher education professional, suggests that not only is the lack of transparency an issue in and of itself, it could lead to conflicts of interests between judges who unknowingly have a financial interest in cases they are overseeing. He goes on to speculate that this could also impact national security matters, noting the presence of sovereign wealth funds and state-backed entities in litigation finance; he raises the concern that they could be funding cases to litigate against key national security priorities. As a solution to this issue, Segura argues for voters and legislators to support the Litigation Funding Transparency Act (LFTA), a bill in the US House of Representatives. This legislation would not only require disclosure of the presence of funding agreements, but also make the names of funders publically available. Many litigation funding industry participants have categorized the LFTA as legislative overreach, and a solution in search of a problem. The bill continues to languish in Congress, with no clear momentum at this time.
Consumer

Legal-Bay Increases Focus on Medical Malpractice Suits 

The medical malpractice field has always been a contentious and active area of litigation, with a volume of cases that is constant and not as affected by economic conditions as other areas of litigation. It comes as no surprise, therefore, that litigation funders are continuing to explore high-value malpractice cases that yield significant returns. In a recent press release, Legal-Bay announced its intention to increase the number of medical practice cases it funds, citing its experience in the field and ability to support claimants through the often long and arduous process.  The funder’s CEO, Chris Janish, highlighted that due to this drawn-out process many plaintiffs suffer financially even while trying to seek compensation, and therefore Legal-Bay’s funding is a crucial aid for those engaging in malpractice claims.
Commercial Regulatory Issues

SEC’s Proposed Amendments Might Impact Litigation Funding

As part of a broader effort by the US Securities & Exchange Commission (SEC) to increase transparency around hedge fund investing and reduce risk in the financial system, the spotlight has fallen on the activities of funds engaging in litigation financing investments. In a proposal last week, the SEC would require hedge funds and private investment advisors to confidentially disclose their litigation funding activities and spending. Analysis by Bloomberg Law highlights that there has been a lack of transparency around the extent of hedge fund involvement in the litigation funding industry, even for regulators. However, the new rules would ensure that funds would have to report what portion of their capital was dedicated to litigation financing efforts. This reporting would not be made public. Bloomberg reports that there will certainly be pushback from both hedge funds and Republican officials, who have long fought against any national disclosure regulation. However, this may not deter the SEC, as Scott Masciana, partner at Holland & Knight, points out that as the industry continues to grow, it will become increasingly difficult to escape further oversight from regulators.
Consumer

Three Consumer Funders Combine to Form Technology-Driven Entity

While many small funders maintain niche or industry-specific practice areas, or in some cases take a regional approach, the industry is now seeing some of these smaller funders join forces to improve their product offering and widen their potential consumer-base. In a press release this Monday, it was announced that Ardec Funding, LawCash and Momentum Funding would be joining forces to operate under a new unified brand: Cartiga. The firm aims to bring the unique attributes of each firm to offer consumer legal funding and attorney funding, built on a foundation of proprietary data and technology assets, and a focus on maximising the customer experience. CEO of the newly-formed Cartiga, Charlie Platt, said that the new funder puts just as much emphasis on providing its clients with the right technology and data analytics tools as it does on providing the raw capital. By doing so, the company hopes to provide attorneys with the resources they need to select the right types of cases, and then see those proceedings through to a successful conclusion.