Therium is a household name in the world of Litigation Finance, and with good reason. As a prominent funder, they’ve expanded access to justice for countless ordinary citizens. Now, Therium has teamed up with five foundations to establish the Community Justice Fund. Its purpose is to provide grants in support of social welfare during and after the Coronavirus pandemic.
Everything we know about the business world is changing, in no small part due to the Coronavirus. Retail outlets, restaurants, bars, theaters, and even insurance companies are feeling the crunch caused by stay-at-home orders, supply shortages, and staffing woes. Yet through it all, Litigation Finance is enjoying a surge of opportunity.
Tail Risk is a term used to describe a situation that’s unlikely to happen, but would have a profound impact should it take place. The current COVID-19 pandemic certainly qualifies. The disruption caused by the Coronavirus outbreak is affecting markets around the globe, yet despite the upheaval – or perhaps because of it – Litigation Finance is thriving.
Our guests today are Paul Cody and Todd Kushman from law firm funder Counsel Financial. Paul and Todd discuss what sets Counsel Financial’s business model apart from that of traditional funders, how they partner with funders in various capacities, the types of financial products the company offers, and how both their company and the industry at large has evolved in the 20 years since Counsel Financial was first founded.
Litigation Finance is a complex and growing industry for good reason. It’s a boon to potential plaintiffs of limited means, as it increases their access to the pursuit of justice. It’s helpful for legal firms keeping the balance sheets tight while still pursuing a heavy caseload. Litigation funding is also good for the court systems at large, as funders only want to fund meritorious cases—cutting down on frivolous litigation clogging courts.
The Australian government plans to move forward with its inquiry into class-action lawsuits. This inquiry was originally planned for March of this year, but has been slow going thanks to the current pandemic. Concerns over COVID-19 have also raised questions about how class actions might hurt Australian small businesses.
The following article is part of an ongoing column titled ‘Investor Insights.’
Brought to you by Ed Truant, founder and content manager of Slingshot Capital, ‘Investor Insights’ will provide thoughtful and engaging perspectives on all aspects of investing in litigation finance.
The UK Legal Industry generated revenues of £9.34bn in the first calendar quarter of 2020, down 6.6% on the final quarter of 2019. And while there are usually falls between Q4 and Q1 due to seasonal factors, the drop this quarter was the highest in four years, a full one percentage point greater than the drop in the same period in the prior year. The final weeks of March cover the period when Covid-19 was beginning to impact the economy.
As the whole world struggles with COVID-19, existing economic disparities are heightened, and impossible to ignore. The pandemic has created an environment in which those already living paycheck to paycheck must now grapple with employers, insurers, and others who have let them down during this crisis.
