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UK Facebook Users Could Benefit from £2.1 Billion Class Action as Case Proceeds to Trial

By Harry Moran |

Competition law expert Dr Liza Lovdahl Gormsen’s multi-billion pound case against Meta has been certified by the Competition Appeal Tribunal in London. Meta failed to prevent the case from proceeding as neither the Competition Appeal Tribunal nor the Court of Appeal granted Meta leave to appeal.

The case is now proceeding to trial, opening up the prospect of compensation for 46 million UK Facebook users.

Every Facebook user who were domiciled in the UK on 15 February 2024 and accessed Facebook at least once in the period between 14 February 2016 and 6 October 2023 will be automatically included in the case unless they opt out by 5 March 2025.

Dr Lovdahl Gormsen says: “We welcome the opportunity to hold Meta to account for abusing its dominant position by exploiting 46 million UK users’ data. Meta abused its market dominance by imposing unfair terms and conditions on UK users and imposing an unlawful price. We are very pleased that the Tribunal has approved me to go ahead and represent the class in our pursuit of redress for each individual affected”

The Tribunal ruled Meta’s attempts to challenge Dr. Lovdahl Gormsen’s claims were “insufficient” after expert testimony from leading economist Fiona Scott Morton, a former Deputy Assistant Attorney General for Economics at the U.S. Department of Justice's Antitrust Division. Whilst Meta attempted to appeal this decision, the Court of Appeal in October refused permission for them to do so.

Class action claims have risen in the UK in the past three years but do not always receive a Collective Proceedings Order. As of November 2024, only a third of all cases have reached this stage, underscoring the importance of this decision.

Dr Lovdahl Gormsen’s case argues that Meta set an ‘unfair price’ for UK Facebook users. The “price” set for granting access to the social network was the surrender of UK users’ highly valuable personal data on a take-it-or-leave-it basis for access to the network. In return, users only received “free” access to Facebook’s social network, and zero monetary recompense whilst Facebook generated billions in revenues from its users’ data. This unfair deal was only possible due to Meta’s market dominance, meaning users had no other social network they could use to get the same service.

The claim seeks damages of at least £2.1 billion, plus interest, on aggregate for all UK consumers affected.

Kate Vernon, partner and Head of Competition Litigation Practice at law firm Quinn Emanuel, representing Dr Lovdahl Gormsen said: “This groundbreaking case promises to redefine the application of competition law in the context of data exploitation. It sets a legal framework for approaching this pivotal matter and represents a significant shift in how we address the associated critical issues.”

Dr Lovdahl Gormsen’s legal action is an opt-out class action brought under the Competition Act 1998 and the first to protect individuals’ data rights against Meta under competition law in England and Wales. The case is backed by some of Britain’s most prominent lawyers and economists, such as the Rt. Honourable Lord Neuberger, former President of the Supreme Court, Professor Richard Whish, Honorary Kings Counsel, economist Chris Pike, and Peter Vicary-Smith, former CEO of Which?.

A notice of the collective proceedings order, which sets out how users may opt out of the claim, can be found here.

About Dr Liza Lovdahl Gormsen

The case is being led on behalf of the class by Dr Liza Lovdahl Gormsen, Senior Research Fellow at the British Institute of International and Comparative Law (BIICL) and the director of the Competition Law Forum.The Competition Law Forum is a noted centre of excellence for European competition and antitrust policy and law.

In addition, Dr Lovdahl Gormsen is a Board Member of the Open Markets Institute and sits on the advisory board of the Journal of Antitrust Enforcement (OUP).

As an international expert in the field, Dr Lovdahl Gormsen co-authored the paper “Facebook’s Anticompetitive Lean in Strategies” (2019) and “Facebook’s Exploitative and Exclusionary Abuses in the Two-Sided Market for Social Networks and Display Advertising” (2021). The latter argues that antitrust enforcement is required to prevent the company from reinforcing its data-driven abuse of market power.

Dr Lovdahl Gormsen is represented by Quinn Emanuel Urquhart & Sullivan UK LLP, one of the UK’s leading competition law specialists. The case is spearheaded by Quinn Emanuel partner Kate Vernon, a highly respected competition law specialist, and assisted by partner Leo Kitchen, and associates Megan Hiluta, Aadil Master and Alexander Groes. Also advising Dr Lovdahl Gormsen are counsel Robert O’Donoghue KC of Brick Court Chambers, Tom Coates of Blackstone Chambers, Greg Adey of One Essex Court and Ian Simester of Fountain Court Chambers.

The case is being funded by Innsworth, one of the world’s largest civil litigation funders.

Federal Court of Australia Rules Against LCM Funded Party in Energy Class Action

By Harry Moran |

LFJ reported earlier this week on the impressive financial returns that can be achieved by funders backing high-value class actions, and now we have another reminder of the inherent risk behind all these investments when the eventual outcome is unknown.

An announcement from Litigation Capital Management (LCM) reveals that the Federal Court of Australia has ruled against the applicant it had funded in a class action brought against Stanwell Corporation Ltd and CS Energy Ltd. The judgment handed down by Justice Sarah Dennington found that the two electricity generators had not engaged in market manipulation to illegally raise prices for their customers. The class action, which was led by Piper Alderman and brought on behalf of over 47,000 customers, had alleged that the two government-owned entities had manipulated Australia’s National Energy Market (NEM) bidding system to create an artificially scarce supply.

LCM had provided A$25m in funding from its own balance sheet capital to support the class action and the funder said it is considering the judgment before deciding to make an appeal before the deadline in 28 days. LCM’s CEO, Patrick Moloney provided the following comment on the outcome: “We will carefully review the Federal Court's decision and, with the legal team, will assess the prospects of a successful appeal from the judgment. Our expectation has always been that an appeal in this case was likely, regardless of the initial outcome. We remain confident in the strength of the underlying claim."

An article from ABC News covering the judgment included statements from both Stanwell and CS Energy, with the Stanwell spokesperson saying that the allegations were “wrongly levied against Stanwell by the international litigation funders and their representatives behind this misconceived action."

The full written judgment from Justice Dennington in the case of Stillwater Pastoral Company Pty Ltd v Stanwell Corporation Ltd can be read here.

Settlement Agreement in Mastercard Claim Sees Divided Reactions From Class Representative and Funder

By Harry Moran |

Although a settlement is often seen as the ideal outcome in collective proceedings backed by a litigation funder, as it provides compensation for the claimants and a return on investment for the funder, this does not always mean that all parties will naturally agree on what such a settlement should look like.  

Reporting by the Financial Times reveals that a settlement agreement in principle has been reached in a consumer claim brought against Mastercard, with the provisional settlement reportedly reaching around £200 million. The legal action, which was brought by class representative and former financial ombudsman Walter Merricks, focused on allegations that the payments company had been charging excessive fees on card transactions. With the claim representing up to 46 million consumers, the settlement is reportedly worth around £40 to £50 for each class member. 

A separate article in The Law Society Gazette provided additional reporting on the reactions of the various parties to the provisional settlement.

Merricks expressed his enthusiasm towards the agreement, saying that it will “deliver meaningful compensation to class members who chose to come forward to participate in the distribution of the damages.” In a similarly positive statement, a Mastercard spokesperson said that that company is “pleased to have reached an agreement”, subject to the review and approval of the settlement by the CAT.

However, the Gazette also reported that the praise for this agreement was not unanimous, with vocal opposition from the claim’s funder Innsworth. A spokesperson for the litigation funder said that the settlement was reached without their agreement, and that “it is both too low and premature.” The spokesperson went on to say that despite the fact Merricks and his legal representatives have previously asserted the claim was valued in the billions, “they seemed to have rushed to settle for a reported £200 million raising some serious questions.” Most strikingly, the Innsworth statement clarified that the funder “will be challenging this agreement and have already written to the CAT.”

Boris Bronfentrinker, a partner at Willkie Farr & Gallagher who represents Merricks in the proceedings, said that “Innsworth’s opposition, and its desire that Mr Merricks continue with risky litigation that could result in UK consumers recovering significantly less, or even nothing .” Bronfentrinker went further and questioned the motives behind Innsworth’s objections, arguing that their objection “has to do with advancing the interests of UK consumers, and is all about funder greed.”

Harris Pogust Steps Down from Chairman of Pogust Goodhead

By Harry Moran |

In a post on LinkedIn, Pogust Goodhead announced that Harris Pogust has retired from his role as Chairman of the global law firm, following his move to step back from being actively involved in UK cases in March of this year. The announcement explained that Mr Pogust will continue working with his US law firm and as President of the non-profit organisation Trial Lawyers For A Better Tomorrow, which works to raise money to help children and support access to education.

Mr Pogust provided the following comment on his departure: “Over the past six years we have built Pogust Goodhead into the world’s premier group litigation firm. We have helped defend the rights of those who cannot defend themselves against the misdeeds of big business. 

At this time in my life, I want to devote more time and energy to my philanthropic endeavours including a charitable organization we have just launched to assist children all over the world reach their fullest potential, their hopes and their dreams. Throughout my career I have been lucky enough to visit communities and make friends all over the world. I have increasingly felt pulled to focus my search for justice and fairness on helping children who are disadvantaged and lack the basic resources to access education.

I look forward to watching Tom lead the firm for many more years and obtain success on behalf of millions of people who would otherwise not have access to justice.”

Thomas Goodhead, global managing partner of Pogust Goodhead, also provided the following statement celebrating Mr Pogust’s contribution to the firm: “Without Harris, founding this firm would never have been possible. He has played a fundamental part in getting us to where we are today. I cannot thank Harris enough for everything he has done for me personally, for the firm and for our clients.

Harris’ generosity of spirit, his constant encouragement and support to myself and everyone in the team have been invaluable. Thanks to him we are taking on some of the biggest companies in the world to make a difference to the lives of millions of people. Harris has had an extraordinary career and while he is retiring from his role as Chairman, we know he will continue to use any means necessary to help improve real people’s lives through his new charitable foundation and his US law firm.”

The announcement did not state who would replace Mr Pogust as chairman of the firm.

Past Event

Legal Funding Journal Virtual Town Hall – 2024 Recap / 2025 Outlook

In this insightful Virtual Town Hall recording—one of our most popular annual sessions—industry experts analyze the major milestones impacting the litigation finance industry and discuss key trends to watch. Topics covered include:
  • The shifting regulatory landscape in the U.S. and U.K.
  • The emergence of new funding models and platforms.
  • The role of technology and AI in driving operational efficiency.

UK Government Minister Says Litigation Funding ‘Plays a Critical Role’

By Harry Moran |

Whilst industry commentators noted that litigation funding would likely not rank highly among the new government’s priorities following this year’s general election, there has been renewed interest in the government’s approach to third-party funding as the Civil Justice Council (CJC) continues its review of the sector.

In a speech to the Civil Justice Council’s 13th National Forum, Heidi Alexander MP highlighted the ongoing work of the CJC’s review of litigation funding and reinforced the government’s message to the third-party funding industry. In a speech that covered a wide range of issues under the new government’s approach to civil justice, Ms Alexander highlighted the CJC’s recently published interim report and its working group, which she described as “expertly chaired by Mr Justice Simon picken and Dr John Sorabji.”

She once again laid out the government’s position, saying that “third-party litigation funding plays a critical role in enabling access to justice and as a government we want to make sure it’s fair for all.” Acknowledging that there was some disappointment they had not picked up the previous parliament’s legislation to solve the PACCAR judgment, Ms Alexander said that “we want to consider this issue carefully and holistically.”

Before moving onto other issues, she highlighted the ongoing review of third-party funding as “incredibly valuable”, and encouraged interested parties to engage with the consultation before it closes at the end of January.

The recording of all the forum’s speakers, including the minister’s remarks, can be found on YouTube.

International Legal Finance Association Adds Arcadia Finance as New Member

By Harry Moran |

The International Legal Finance Association (ILFA) today announced the addition of Arcadia Finance to the only global association of commercial legal finance companies. 

Launching in June, Arcadia provides specialized services for U.S.-based commercial and patent litigation, domestic and international arbitration, and funding for a wide variety of other litigation-based assets, from mass torts and law firm lending to patent acquisition. 

“ILFA is pleased to welcome the newly founded Arcadia Finance to its growing membership base,” said Shannon Campagna, ILFA’s interim Executive Director. “Arcadia’s team is one of the most experienced in the industry, and the firm will play a crucial role in promoting the highest standards of operation and service for the commercial legal finance sector worldwide.” 

Arcadia was founded by three litigation finance industry veterans with over 25 years of combined experience and who have invested over $425 million across 80+ deals. The trio formerly led various legal and investment units at ILFA member firms, and each holds the title of managing director at Arcadia: Dave Kerstein, former managing director and senior investment officer at Validity and senior investment manager at Bentham IMF, now Omni Bridgeway; Ronit Cohen, former portfolio counsel at Validity and legal counsel at Bentham IMF; and Joshua Libling, former director of risk analytics at Validity. 

"At Arcadia Finance, we believe that innovative financial solutions are a crucial part of the legal industry and capable of benefitting all participants in their pursuit of just outcomes," Joshua Libling, Managing Director, stated. "ILFA is the preeminent industry association and we’re proud to join it and to share our expertise in pursuit of responsible and sustained evolution of our industry. We look forward to working alongside other leaders to set new standards and expand the possibilities of legal finance." 

About the International Legal Finance Association 

The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate, and influence legislative, regulatory, and judicial landscapes as the voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world. 

For more information, visit www.ilfa.com and find us on LinkedIn and X @ILFA_Official

About Arcadia Finance 

Arcadia is a U.S. commercial litigation, patent litigation, and domestic and international arbitration-focused legal funder offering solutions to all participants in the legal market. Led by industry veterans with over $425 million invested across over 80 deals, the firm offers customized financial solutions for all — from litigation boutiques to AmLaw firms and corporations. Arcadia’s mission is to invest in meritorious litigation, and with backing from multiple and flexible capital providers, the team find new ways to help clients and law firms finance, monetize, and share risk on their legal assets. Arcadia aims to make securing litigation funding as fast and convenient as possible. Going beyond traditional litigation finance agreements, Arcadia provides “frictionless funding” through the adaptable and transparent partnerships necessary for clients and law firms to make the most well-informed decisions. At every stage from pre-litigation to appeal and enforcement, Arcadia has the experience, flexibility, and capital to assist. 

For more information, visit https://www.arcadiafin.com/meet-our-team

LCM Funding Antitrust Claim Against Microsoft Over Cloud Computing Fees

By Harry Moran |

Among the global tech giants facing the most scrutiny from regulatory bodies, Microsoft has increasingly come under the spotlight in both Europe and America for potential breaches of antitrust rules by its cloud computing business. A lawsuit filed today suggests that these external pressures may be ramping up, as a £1 billion claim is targeting the company for allegedly overcharging its UK customers.

Reporting by TechCrunch covers the news that a new antitrust lawsuit has been filed against Microsoft, which alleges that the company has been overcharging customers of its cloud computing competitors to license Windows Server software. The claim, which was filed today in the Competition Appeal Tribunal (CAT), is being brought on an opt-out basis, representing any companies or organisations who purchased a license to use Windows Server from either AWS, GCP or Alibaba Cloud from December 2018. The lawsuit is seeking around £1 billion in compensation with Litigation Capital Management (LCM) providing funding through its British office, LCM Funding UK Limited.

Dr. Maria Luisa Stasi, the Proposed Class Representative (PCR), said that the claim “aims to challenge Microsoft’s anti-competitive behaviour, push them to reveal exactly how much businesses in the UK have been illegally penalised, and return the money to organisations that have been unfairly overcharged.” Dr Stasi has instructed Scott+Scott UK LLP as solicitors for the litigation, with the law firm working with barristers from Brick Court Chambers and One Essex Court Chambers. 

In a separate post, Exton Advisors announced that it had advised Dr Stasi on securing third-party funding from LCM, with Managing Director John Astill stating: “This is another example of holding large corporates to account and ensuring fair entry to consumer markets by smaller players. Competition laws exist to protect both individuals and companies, and it is only with the benefit of third-party funding that these claims can ultimately succeed. Exton Advisors are delighted to play our part in ensuring claims like these are funded in a timely, efficient, and transparent manner.”

James Hain-Cole, partner at Scott+Scott, said: “Litigation Funding Agreements have changed a lot since the collective action regime was implemented and it was helpful to obtain advice on market standard from Exton, who have seen a lot of LFAs and have great visibility of the funding market.”

More information about the lawsuit can be found on the UK Cloud Licensing Claim website.

Wexler Announces $1.4 Million Pre-Seed Financing, Global Law Firm Adoption and Launch of AI Agent to Enhance Dispute Resolution

By Harry Moran |

Wexler AI, the AI-powered legal fact intelligence platform, today announced major enhancements driving adoption among leading law firms, including Burges Salmon and a top AmLaw100 firm. Clifford Chance is also exploring the platform for use in its world-leading litigation and dispute resolution practice. Wexler's platform automates essential fact-checking and intelligence gathering in high-stakes legal disputes, allowing lawyers to focus on more complex and strategic value-driven activities. These advancements follow a $1.4M pre-seed funding round led by Myriad Venture Partners, with support from Entrepreneur First, prominent angel investors at ComplyAdvantage, Moonpig, Tractable, and CreditKudos, fueling Wexler's growth and mission to redefine litigation worldwide.

Since its launch in April of this year, Wexler AI has processed over one million queries, achieved approximately 2X month-over-month growth, and more than tripled its annual recurring revenue (ARR). Wexler's advanced platform enables law firms to help manage large caseloads with greater accuracy, reallocating resources from time-intensive manual review to high-value legal strategy. Built by security and privacy experts, the platform uses user-specific encryption keys, masks personal data, and meets ISO 27001, GDPR, and AWS Cloud Security standards.

"Wexler assists lawyers working on the world's most complex cases. The platform delivers critical, verified facts that legal teams can act on with full confidence," said Gregory Mostyn, co-founder and CEO of Wexler AI. "With support from Myriad Venture Partners, and Entrepreneur First, and working closely with Burges Salmon and also Clifford Chance, among others, we're not just transforming how the legal industry tackles the time and efficiencies of fact-finding, but helping our customers generate greater business value for their clients."

There is significant potential to improve efficiencies in the litigation document review process. Wexler's AI approach reduces manual work, minimizes risk, and uncovers critical facts faster. Unlike traditional eDiscovery tools that merely organize documents, Wexler is purpose-built for high-stakes dispute resolution, delivering insights with an accuracy matching seasoned litigators.

Central to this is KiM, Wexler's advanced agent for complex dispute tasks, which produces verified work output directly from case facts, automating steps like drafting, generating court applications, and extracting data from vast document sets. More than a passive tool, Wexler uncovers red flags, suggests follow-ups, and enhances case strategy as an active partner, enabling legal teams to drive efficiency and deliver results on the most challenging cases.

"Wexler is a powerful AI tool that is clearly designed for the types and volumes of work faced in dispute resolution," said Tom Whittaker, director at Burges Salmon. "It allows us to identify relevant facts and produce useful work in a relatively short time, augmenting the work of our expert teams by providing them with additional methods to achieve their objectives. It has been a pleasure to work with the Wexler team over a number of years to continually improve its functionality to help meet our clients' and colleagues' high expectations.

With new funding from Myriad, Wexler is expanding its platform in 2025 including new features such as automated document drafting, advanced fact-checking tools, and streamlined discovery requests. These enhancements will extend Wexler's impact beyond the legal sector, offering new applications in compliance and HR investigations.

"Wexler AI is redefining fact-finding for legal and investigative work, and we see enormous potential in its unique approach," said Chris Fisher, founder and managing partner of Myriad Venture Partners. "Their rapid growth and ability to deliver verified, actionable information are transforming how legal teams and other professionals manage complex data. We're excited to support Wexler's journey and look forward to their continued momentum and innovation."

Wexler's founding team blends deep expertise in AI, law, and business. Gregory Mostyn and Kush Madlani met at Entrepreneur First, united by a vision of creating a category defining applied AI company. Gregory saw the inefficiencies of litigation firsthand when his barrister, then judge father, returned from work with binders piled high to the roof of his office. Kush, a former JP Morgan derivatives trader, began automating workflows with Python before completing a Machine Learning Master's at UCL and joining Tractable, where he developed fraud-detection models and continuous improvement systems. Kush's scientific background pairs perfectly with Gregory's commercial experience as a marketing and sales director to transform dispute resolution. 

Wexler AI collaborates with partners across the legal sector, from AM 100 law firms to in-house teams at major enterprises. Interested clients can request a demo at https://www.wexler.ai/.

About Wexler AI

Wexler AI tackles the world's most complex cases by streamlining fact analysis for legal, compliance, eDiscovery, tax, and forensics teams. Trusted by top global law firms, Wexler is redefining fact-finding through a combination of AI and human expertise. For more information, visit https://www.wexler.ai/.

About Myriad Venture Partners

Myriad Venture Partners is an early-stage venture firm defining the future of business solutions. Investing in visionary AI, clean technology, and B2B software leaders, Myriad brings decades of expertise and a robust corporate and financial partnership network. By connecting entrepreneurs, corporate partners, industry leaders, and co-investors, Myriad is changing the ways businesses operate, compete, and create value.