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Consumer

Trademark Case Lands $3 Million Award for Consumer Legal Funder

Oasis Legal Finance was awarded more than $3 million in costs and attorney’s fees after winning a trademark case against its former CEO. Bloomberg Law reports that the case was deemed ‘exceptional’ by Judge Robert W Gettleman, who stated that the company proved most of its claims. He also noted that the defendants were ‘unreasonable’ in their litigation strategy. Oasis fired its CEO in 2013, and later sued him and one other party for trademark infringement after he allegedly launched a similarly named business.
Commercial

How Men Can Best Challenge Gender Inequities

Aviva Will is the founder of The Equity Project, as well as the Co-CEO of Burford Capital. In honor of International Women’s Day, she led a panel on how men can better challenge gender inequities in the legal field. Burford Capital details that the panel was comprised of business leaders from Freddie Mac, Hogan Lovells, and the International Diversity Forum. Despite advancements made by women, men still eclipse women in managerial or leadership roles in law firms and in the business world at large. While legal firms recruit women at greater levels than ever—partnership numbers haven’t changed nearly as much. GC’s can play a role in encouraging gender diversity simply by discussing it. Asking how many women hold leadership roles, or ensuring that everyone working on their case is being fairly credited and compensated for their contributions can go a long way. As firms take steps toward making workplaces and leadership more friendly toward women, attitudes toward diversity are changing dramatically. One panelist explains that there are three specific aspects of law firm culture that need to be updated and expanded—vulnerability, empathy, and humility. These involve listening, sharing honestly, and recognizing that there’s always more we don’t know. Better communication and a willingness to listen to marginalized voices can clear a path for a more diverse future.
Announcements Commercial

Augusta Ventures funds Which? in landmark collective action against Qualcomm

Augusta Ventures, the largest litigation and dispute funding institution in the UK by volume of cases, has provided financing to help the Consumers’ Association (known as Which?) launch an opt-out collective claim, litigated by Hausfeld, against Qualcomm, Inc. for over £480 million, on behalf of a class of around 29 million UK consumers.

Which? is alleging that Qualcomm abuses its dominance in the markets for smartphone chipsets and standard essential patents, the result of which is that Qualcomm is able to overcharge smartphone manufacturers like Apple and Samsung for its technology.  Which? says that those extra costs, which are calculated as a percentage of the price of phone handsets, have been passed on to UK purchasers of Apple and Samsung smartphones.

Which?’s claim will automatically include compensation claims for consumers who had purchased particular models of Apple or Samsung smartphones, either direct from the manufacturer, from a network operator or smartphone retailer, since 1 October 2015.

Robert Hanna, Managing Director of Augusta Ventures, said:

“This claim is about seeking redress for the millions of consumers who are the ultimate victims of Qualcomm’s anticompetitive conduct.  We are very pleased to be working with Which? in their first claim utilising the opt-out regime introduced by the Consumer Rights Act 2015.”  

Background on the legal case

Which?’s claim will state that Qualcomm employs two harmful and unlawful practices:

  • It refuses to license its patents to other competing chipset manufacturers and,
  • it refuses to supply chipsets to smartphone manufacturers, such as Apple and Samsung, unless those companies obtain a separate licence and pay substantial royalties to Qualcomm.

It is argued that these abuses enable Qualcomm to charge Apple and Samsung higher fees for the licences for its patents, than if Qualcomm behaved lawfully.  Qualcomm’s royalties are charged as a percentage of the price of smartphones and which have to be paid by  smartphone manufacturers even when they don’t use Qualcomm’s chipsets.

Which? says that the higher costs are ultimately passed on to consumers and Which? will attempt to recover these under the collective regime which allows Which? to apply to pursue a claim for an aggregate award of damages on behalf of affected UK consumers.

Now the case has been filed, the next step will be for Which? to obtain permission from the Competition Appeal Tribunal to serve proceedings on Qualcomm.  If granted, the Tribunal will then decide whether or not Which? can act as the class representative and whether the claim can proceed to trial.

Hausfeld & Co LLP are supported by a counsel team at Monckton Chambers (Jon Turner QC, Anneli Howard, Michael Armitage and Ciar McAndrew).  Which?’s economic experts are Oxera Consulting LLP and the claim is funded by Augusta Ventures.

About Augusta Ventures 

- Augusta is the largest litigation and dispute funding institution in the UK by # cases. Augusta’s scale enables us to make decisions in market-leading timeframes and fund cases of any size. 

- Augusta is organised into a series of specialist practice groups: Arbitration, Class/Group Action, Competition, and Consumer Litigation, and sectors including Financial Services and Construction & Energy. 

- At the beginning of 2021, with over £300m of capital, Augusta had funded over 240 claims with a market leading ratio of over 70% 

- Augusta has offices in the UK, Australia and Canada. 

About Which? 

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone.  

About Hausfeld 

Hausfeld & Co LLP, a leading international law firm with offices in Europe and the US, specialises in claimant litigation and collective redress.  The firm filed the first standalone opt-out collective actions on behalf of rail passengers in 2019 and is leading an opt-out action against six banks over their participation in unlawful price-fixing of the foreign exchange currency markets.  Hausfeld leads on Trucks cartel claims in the UK, Germany and the Netherlands. It has acted on some of the most complex damages claims of the last decade: on the ‘Interchange Fee’ litigation against Visa and Mastercard and the Air Cargo litigation against British Airways and 13 other airlines.  It is also presently instructed in ‘Google Shopping’ claims on behalf of price comparison websites against Google and in claims against Marriott International, YouTube and Facebook in data breach and privacy litigation.

Commercial

Australian High Court Rules on Competing Class Actions

Australia’s High Court determined by a slim 3-2 majority that first-come-first-serve will not apply to overlapping or competing class actions. Some have suggested that there should be a presumption that the first case filed should proceed, and later cases stayed. The High Court disagreed, and instead suggested numerous factors that should be considered. Lexology details the list of considerations courts weighed in a recent determination on class actions against AMP. These included:
  • the scope and nature of the cause of action
  • working theory of the case
  • class size
  • availability of legal funding and other resources
  • progress made
  • experience of the legal team
  • estimated net return to claimants
Third-party funding played an important part in the judge’s decision. The funding agreement largely determines any hypothetical payout to class members based on percentages spelled out in the funding agreement. The High Court asserted that a first-in-line presumption could lead t a mad rush to file cases as quickly as possible. This could negatively impact class members and clog court dockets. Moving forward, it appears that litigation funding agreements will play a big role in determining case order when there are overlapping or competing class actions. If courts continue to weigh proposed payouts to claimants, the exact terms of third-party funding agreements will be subjected to even greater scrutiny by courts. This in turn may lead to more competitive agreements and greater competition between funders. Still, this High Court ruling doesn’t necessarily set a national binding precedent. Many are calling for greater uniformity in how cases are prioritized across the country. The Federal Government is likely to step up as they continue their efforts to regulate third-party legal funding.
Announcements Commercial

Mill City Ventures reports record year for revenues and earnings

Mill City Ventures III, Ltd. ("Mill City" or the "Company") (OTCQB: MCVT), a non-bank lender and specialty finance company, announced today its revenue and net income for the year ended December 31, 2020 was a record from 13 years in business.
  • Revenues increased 700% to $1.3M from $161,000 for the prior year
  • Earnings from operations was $561,000, an increase from a loss of $672,000 for the prior year
  • Net asset increase from operations before taxes was $2.5M, compared to a net loss from operations before taxes of ($657,000)
  • Shareholder equity increased 16% to $11.6M from $10.1M, after giving effect to a December 2020 dividend payment of $539,000
Mill City's net margins from operations were 43% for its first full year after a complete shift in business operations. Net asset value per share increased to $1.08 from $0.91. Chief Executive Officer Douglas M. Polinsky stated, "We undertook to transform our business in 2020. In so doing, we have tried to remain nimble so as to take advantage of opportunities as they arise.  This has proven critical to our success since potential borrowers often come to us in situations not bankable due to time constraints or other issues.  We take the time to understand the situation and confer with our board and receive input from advisors on how to analyze the opportunity." "We have enjoyed lending opportunities in title loans, adjudicated insurance settlements, real estate bridge loans, and collateralized personal loans to high-net-worth borrowers. In addition, we continue to leverage our experience in the public market to participate in the SPAC market and explore opportunities in litigation finance. We will continue to make our decisions after sufficient due diligence and incorporating appropriate risk-mitigation processes, structures and terms," Mr. Polinsky continues. The investment portfolio has continued to add to the growth in assets into the first quarter of 2021. Mill City also repurchased 381,489 shares during the year. Mill City's forward-looking statements in this release are made pursuant to the "safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements, including without limitation continued demand for short-term specialty non-bank loans, increased levels of competition, new products or offerings introduced by competitors, changes in the general economy, changes in interest rates or the market for loans, and other risks. About Mill City Ventures III, Ltd.
Founded in 2007, Mill City Ventures III, Ltd., is a short-term non-bank lending and specialty finance company. Additional information can be found at www.sec.gov.
Commercial

Big IP Settlements Can Happen, Even for Nonpracticing Patent Holders

Billion-dollar verdicts in IP cases don’t happen every day. Even when they do, they typically don’t hold up on appeal. Yet these sizable verdicts turn heads in the media and bring attention to the value of patents. This attention is a welcome change for some who claim that the media has an anti-patent bias. Above the Law explains that a billion-plus verdict from February has commanded media notice. The verdict in Caltech v Apple/Broadcom was covered by big outlets like WaPo and Bloomberg. Investors in Litigation Finance often choose IP-related investments because of the potential for a sizable award.  What other impacts do these large IP verdicts have? They may encourage patent holders to take their case to trial rather than accepting a lowball settlement. The jurisdiction responsible for the verdict—Western District of Texas—will no doubt have patent holders flocking toward it as defendants attempt to flock away. The fanfare here isn’t just about the size of the verdict, but the fact that it went to a non-practicing entity. Juries may presume the value of the patent because money was spent to purchase it—particularly if the purchaser is another large tech company. Some are asking if most juries will be inclined to presume a patent has a high value because patent holders are willing to go to trial to protect it. Seeing funders like Fortress reap the benefits of mega-verdicts can inspire increased investments and new investors. The demand for legal funding will likely also increase, as plaintiffs come to appreciate the impact funding can have on pursuing an action effectively. Getting adequate funding for a case can mean the difference between accepting a low settlement and having the means to go to trial.
Announcements Commercial

Kerberos Capital Management Named Top 3 Global Newcomer of the Year by Private Debt Investor

Kerberos Capital Management was selected as the #3 Global Newcomer of the Year for 2020 among private debt funds on a worldwide basis by Private Debt Investor, a global independent publication based in London covering the private debt and private equity industries. The Private Debt Investor Awards acknowledge leaders across an array of categories and are the culmination of a broad-based voting process among industry participants, including the private debt, private equity and institutional limited partner communities. Kerberos Capital Management is a private credit asset management firm specializing in direct lending to law firms and opportunistic private credit. Since 2018, Kerberos has provided bespoke solutions to borrowers and law firms throughout the United States and originated over $300 million in direct lending transactions. Kerberos’ investors include some of the world’s most respected pension funds, multi-family offices, and asset managers. Kerberos’ investment team is comprised of senior members from both the legal and private credit industries, including former principals of the world’s leading law firms and multi-billion dollar private credit funds. The firm is headquartered in Chicago.
Commercial

Flat 2020 Performance for Law Firm Belies New Strategy

In a sign of how law firms might be growing more cost-conscious, Trans-Atlantic legal firm Bryan Cave Leighton Paisner cut its workforce by 4% globally as part of its newly adopted strategic plan. This included closing one office in Beijing, and intensifying focus on specific areas of practice. Law.com reports that financial performance was basically flat throughout 2020—which is not as bad as it sounds given the economic impact of COVID. Gross revenue decreased about 1% to just over $860 million. Profits per partner went up by about .5% to $837,000. The firm is poised to flourish in the near future, thanks to Project Advance. This new strategic plan was developed in concert with McKinsey & Co. It focuses on three ‘growth engines:’ litigation and investigations, real estate as an asset class, and mid-market corporate and finance. Other aspects of Project Advance include reducing personnel company-wide by 118, which included staff members and attorneys. Though the Beijing office was shuttered, offices in Hong Kong and Singapore remain active. The firm currently employs 1,370 lawyers across eight countries. Early in 2020, a Paris team with 21 layers was added. To ensure focus on the main objectives of Project Advance, the firm named Sean Odendahl as Chief Transformation Officer in October of last year. It’s anticipated that staff will return to offices after June 30 of this year, depending on COVID-related factors. Some virtual work is expected, as well as open-space office plans and other steps to reduce the firm’s footprint. Determinations are currently being made as to when it makes sense to bring people together for in-person meetings, as opposed to remote meetings.
Commercial

Omni Bridgeway Expands Arbitration in German-Speaking Regions

Dr. Martin Metz LLM has recently joined the team at Omni Bridgeway as Senior Legal Counsel and Investment Manager. Formerly of DLA Piper, Metz will now be based in the Cologne office. Omni Bridgeway announced that Metz joins two new hires in German-speaking regions, expanding the company’s reach, knowledge base, and capacity for cultural awareness. Dr. Arndt Eversberg, Omni Bridgeway Germany’s Managing Director, explains that request for funding has skyrocketed in Germany of late. The specialized experience of Dr. Metz promises to strengthen the practice overall.