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Commercial

Temur Akhmedov Reportedly Lost $50 Million in High-Risk Trades

Infighting among members of the Akhmedov family continues, as divorcee Tatiana Akhmedova continues to accuse her son of hiding assets. Temur Akhmedov, London oil trader and son of Farkhad Akhmedov, denies that he hid money from his mother. City AM reports that the younger Akhmedov recently stated that while he was studying at the London School of Economics, he engaged in several risky trades. He claims to have ultimately lost more than $50 million. This was revealed during a London court case over the disbursement of a 2016 divorce settlement. Burford Capital is funding Akhmedova’s case.
Litigation Finance News
Announcements Commercial Special Features

LFJ to Host Special Digital Conference on Commercial Litigation Funding

2020 was a pivotal year for commercial litigation funding, and the industry approaches 2021 on the cusp of massive growth. Litigation Finance Journal is hosting a special digital conference which will cover the most impactful stories of the past year, and offer insights into what next year will bring. This special one-hour panel discussion and Q&A will explore the major events of the past 12 months, including the Omni/IMF merger, the founding of the ILFA, industry innovation (corporate portfolio funding and financing M&A transactions) and more. Our panel of industry experts will also offer their views on what's in store for 2021 and beyond.

Moderator

Ed Truant Founder Slingshot Capital

Panelists

Andrew Saker CEO Omni Bridgeway

  Neil Purslow Co-Founder Therium Capital Management

   Nick Rowles-Davies Executive Vice Chairman LCM

The event will be held on Thursday, December 17th at 5pm ET. It will be audio-only, and comprise a 45-min panel discussion, followed by a 15-min Q&A with attendees. Tickets can be found here. Anyone who purchases a ticket will receive a recording of the event; it is not necessary to attend to receive the recording.  Questions? Write to: jfreund@litigationfinancejournal.com Hope you enjoy the event! - The LFJ Team
Commercial

Mara Abols Joins Omni Bridgeway as Corporate Counsel in Toronto

The Omni Bridgeway Toronto team grows larger with the addition of Mara Abols. She’ll be serving as a member of the Legal, Risk, and Compliance team, which handles global legal issues. Omni Bridgeway details that Abols will negotiate, advise, and draft litigation funding agreements as well as focus on corporate legal issues. Abols is an excellent fit for a company that has grown in size and number of deals in recent years. Abols is a bar member in Ontario and New York, and graduated with distinction from McGill University. She was also part of an International Exchange with the University of Copenhagen.
Commercial

Blackmore Bonds Pursues Suit Against Insurers Accused of Failing to Pay Out

Two insurers have been accused of wrongdoing by Blackmore Bonds after refusing to pay out to bondholders. Bondholders are guaranteed by law to receive shortfalls if the company becomes insolvent. They have stated the likelihood of legal proceedings in order to force payment. International Adviser explains that a formal demand for payment was made in April of this year, but no payments have thus far been made. While litigation is proceeding, it’s expected to be expensive and lengthy. As such, the trustee is said to be seeking out litigation funding to finance the case. In the meantime, bondholders have been told to expect substantial shortfalls.
Commercial

Ukrainian Airlines Class Action Granted Carriage

A class action brought by plaintiff Omid Arsalani has been granted carriage by the Ontario Superior Court of Justice. The case is in relation to the downing of Ukraine International Airlines Flight PS752 on January 8th. Law Times News details that two plaintiffs who filed similar but separate actions, had each tried to stay the other action—and that another action was also filed by an additional two potential plaintiffs. In determining which case would receive carriage, the judge considered the quality of counsel, the chances of success in the case, litigation funding, and proposed case theory. In addition to carriage, Arsalani’s action is being funded by Galactic Litigation Partners LLC. The funding agreement has been approved by the courts as of September of this year. Those who led the other cases were informed that they could not file for a new class action—but could pursue individual cases relating to the downed plane.
Announcements Commercial

Winshear Gold Secures Funding for Legal Proceedings Against the Government of Tanzania

Winshear Gold Corp. (TSX-V: WINS) ("Winshear" or the "Company") provides the following update on arbitration activities related to the expropriation of the SMP Gold Project (the “Project”) by the Government of Tanzania.

Winshear is pleased to advise that it has completed a Litigation Funding Agreement (the “Agreement”) with an affiliate of the Litigation Funder. The Agreement provides for funds to be drawn from a financing facility to meet all fees and expenses relating to the pursuit of certain claims against the Government of Tanzania for the illegal expropriation and loss of the SMP Gold Project, including all costs associated with legal proceedings, media/public relations, geopolitical efforts, and, if necessary, enforcement, of any awards.

Mark Sander, President of Winshear Gold, commented, “Winshear’s legal representatives, Lalive, backed by the financial support of the Litigation Funder, have been engaged to aggressively pursue compensation for the illegal activities of the Government of Tanzania in expropriating the SMP Gold Project. Lalive is highly experienced in arbitration cases in Tanzania with a track record of success for its clients.”

Background information on the arbitration case is contained in Winshear’s press releases of:

  • January 10, 2020, which announced delivery of the required 180-day notice of intent to file arbitration proceedings to the Attorney General of Tanzania; and
  • July 14, 2020, which announced the commencement of international arbitration proceedings after the 180-day notice period had expired without response from the Government of Tanzania.

Compensation being sought for expropriation of the SMP Gold Project may include, but will not be limited to, the value of the historic investment made by Winshear in Tanzania, the value of the project at the time that tenure was expropriated and damages the Company has suffered as a result of Tanzania’s acts and omissions.

The Company is not able to make any comment in relation to the potential quantum of any claim for compensation at this point.

ON BEHALF OF THE BOARD OF DIRECTORS “Mark Sander” Dr. Mark V. Sander President

For more information, please contact Irene Dorsman at (604) 210-8751 or visit www.winshear.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautions Regarding Forward-Looking Statements

This news release includes certain statements and information that may contain forward-looking information within the meaning of applicable Canadian securities laws.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including the risks normally involved in the exploration, development and mining business or as may be otherwise set out in the Company’s filings with Canadian securities regulatory agencies. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.

Commercial

New Zealand Law Commission in Favor of Litigation Funding

Recommendations from the New Zealand Law Commission include strong support for litigation funding as well as advocating for a strong class action regime. Meanwhile, insurance companies are among those are expected to balk at any new policies making class action suits more common. Newsroom New Zealand reports that the paper released by the commission affirmed that there has not been a consensus on the desirability or use of litigation funding, or class action cases in general. In fact, existing NZ rules on class actions date back to 1882. Amokura Kawharu, president of the commission, affirms that cost is the main barrier to taking meritorious cases to court. She explains that class actions improve access to justice while setting up a mechanism that encourages companies to obey the law and treat citizens fairly. Litigation Finance helps in these endeavors by removing the obstacles that inhibit access to justice. In the absence of a statutory regime, class actions can be a difficult endeavor. Insurance companies are particularly opposed to allowing litigation funders to get involved with class action participants. According to the Law Commission papers, current shortcomings in the current class action process can be best addressed with the new legislation. At the same time, the report acknowledges that making class action suits easier is likely to create more of them. One lawyer makes the claim that US “commonplace” class actions feature claims lacking in merit. Many contest this, especially since no competent litigation funder wants to back a case without merit. Still, there is a demonstrable uptick of class actions in Australia since litigation funding became more mainstream. This is only expected to worsen due to COVID business closures, supply disruptions, and contract disputes. A final report will be given to the Minister of Justice before May of 2022. The goal is to finalize class action and litigation funding laws before the next wave of new COVID-related cases.
Commercial

Dechert Report Foretells Sharp Rise in Securities Litigation

In an already difficult year for companies around the world, a new report from global firm Dechert tells us to expect even more hardship. A new report predicts that both the number of settlements and the final settlement sizes are expected to rise significantly. Global Legal Post details that as global securities litigation evolves, companies that cross borders should be ready for a rush of securities class actions—in the US and globally. Some jurisdictions, Singapore for example, are expected to be hot spots for incoming litigation. Part of what’s inspiring the rise in cases is the mainstreaming of third-party litigation funding. There’s concern about the control that funders may have over the litigation process, even though most countries specifically prohibit funders from taking control over decision making in the cases they fund. A newly formed professional group, the ILFA, intends to advocate for the industry while educating and strengthening the rules that govern the practice.
Commercial

Gerchen and Hammes Seek Out Targets for Acquisition

Adam Gerchen, whose 2016 sale of his litigation finance company to Burford Capital made waves, is at it again. This time with partner Jeffrey Hammes (formerly of Kirkland & Ellis) and their special purpose acquisition company. The pair are looking for a new acquisition thanks to an IPO over-allotment of $175 million. Law.com explains that the team is looking at two dozen targets, and plans to buy one worth roughly 4-5 times the capital they’ve raised. These companies range from legal technology, governance, and risk/compliance, and are mostly located in and around Chicago. Gerchen details that the current financial instability in global markets makes this the perfect time for SPACs to facilitate consolidation in multiple industries. He describes the process as a private equity fund with a single donor. One company becomes the platform, and then after acquisition, others can be brought in. Once transactions are completed, growth is facilitated. Gerchen is clear in saying that his SPAC adds qualitative and quantitative value.