Trending Now

All Articles

3626 Articles
Commercial

UK Class Action-Style Suit Proceeds Against Marriott International

A data breach impacting at least 500 million guests is the foundation of a class-action-style suit filed against Marriott International. The alleged breaches took place between July 2014 and September 2018, and involve guests around the world, including about 30 million EU residents. Tech Crunch explains that UK citizen Martin Bryant has filed the legal action on behalf of the millions of guests who made reservations at the hotel brand throughout England and Wales. Beginning in 2014, hackers broke into Starwood Hotels group databases, stealing guest names, email and phone numbers, physical addresses, credit card data, gender, and more. In 2016, Starwood was acquired by Marriott, but the data breach was not discovered until 2018. Global litigation funder Harbour Litigation Funding is fully funding the case, signaling the funding industry’s willingness to fund representative actions in UK cases. Some suggest this is a stepping stone to a larger payout. Hausfeld, an international law firm specializing in class actions, is representing Martin Bryant on behalf of the group. Michael Bywell, a partner at Hausfeld, stated that Marriott International failed to secure data or improve technical mechanisms in order to protect guest information. Their actions represent a clear breach of data protection laws, specifically written to protect the data of private citizens.   This claim is brought under Rule 19.6 of civil procedure rules, and includes any member of the claimant class who has not opted out. Those who wish to register may do so, provided they made reservations at one of the impacted brands. These include (but are not limited to) Sheraton Hotels, Aloft, The Luxury Collection, and any other hotels owned or operated by Marriott International or Starwood during the relevant time period. There are no fees or costs associated with registering interest in the case.
Announcements Commercial

CrosstownHelp™: BridgePoint Financial announces Expropriation and Business-Loss Consulting for those affected by delayed LRT project

TORONTO, Aug. 20, 2020 /CNW/ - In response to the more than 3,000 small businesses negatively affected by the Eglinton Crosstown LRT project, BridgePoint Financial has launched CrosstownHelpTM, an expropriation and business-loss consulting and financing program to help recoup losses and restore financial and business stability to those impacted by the delayed infrastructure project. BridgePoint Financial provides businesses with access to legal representation, expert advice, and financing that business owners can use for working capital, relocation costs, or to pay for the costs of litigation allowing them to withstand the negative financial effects of the government's actions. "BridgePoint Financial launched CrosstownHelpTM to educate businesses and provide them with the guidance and financial support they need to pursue expropriation claims and receive the fair compensation they are entitled to," said John Rossos, Co-founder and Principal of BridgePoint Financial Services Inc. "The cost of expropriation is significant, and while the Eglinton LRT is a much-needed infrastructure project, hundreds of businesses have received substantially less than fair value to cover the loss and interruption of business." Unfortunately, the Eglinton Crosstown LRT project, as with many road construction projects, has come at a big cost to business owners who often have to borrow, relocate or close down altogether. The Ontario Expropriation Act provides that businesses will receive fair compensation for business interruption, relocation and ancillary costs, and loss of business and goodwill. To date, $6.6 million has been given to Business Improvement Areas for marketing, parking, and maintenance support, while the Province of Ontario recently announced $3 million to support the areas impacted by the construction. "For small business owners operating along Eglinton Avenue, the transit project is a threat to their livelihood," added Rossos. "In many cases, these business owners feel intimidated and aren't aware of their options or that they have any.  BridgePoint's goal is to give businesses the best opportunity to level the playing field to advance their claims." BridgePoint's consulting services provide access to the best expropriation expertise across Canada and allow business owners to hire top lawyers and experts without being forced to settle for less due to cash flow related issues, assuming full recoverability of costs from the government. BridgePoint will also provide businesses with financing to assist with:
  • Costs associated with loss of revenue including legal and expert fees or business relocation;
  • Costs due to business interruption including working capital to stabilize the business, preserve goodwill and cover damages; and
  • Access to the best legal representation and expert advice including experts in expropriation and funding to pay for those costs.
The Eglinton Crosstown LRT is one of the largest transit projects in Canada and, once completed, will include 25 stops along a 19km corridor across Eglinton Avenue in Toronto. Since construction began in 2011, more than 140 businesses along Eglinton Avenue West have closed. Recently, the City of Toronto announced that construction will continue well into 2022. About BridgePoint Financial
BridgePoint Financial is Canada's leading provider of specialized financing solutions for the Canadian legal services market, addressing the needs of plaintiffs, lawyers, and the experts involved in advancing legal claims. BridgePoint's goal is to level the litigation playing field and to protect its clients' rights to full and fair access to justice. For more information about the expropriation consulting and financing services available from BridgePoint Financial, visit crosstownhelp.com.
The LFJ Podcast
Hosted By Michael Weisz |
In this episode, we spoke with Michael Weisz of YieldStreet. Michael discusses how YieldStreet's platform operates, allowing accredited investors to participate in alternative asset deals (including litigation finance) typically reserved for institutional players. Michael also explains the advantages of the platform provided to both investors and deal partners, as well as how the funding industry has evolved over the five years since YieldStreet's inception, and why he believes the litigation funding industry is headed for a $50-$100 billion valuation by 2030. [podcast_episode episode="6099" content="title,player,details"]
Commercial

Will New Aussie Funding Regulations Impede Class Actions?

As the federal government in Australia sets up new regulations governing the Litigation Finance industry, some fear that class actions will be much more difficult to pursue. One major change requires that all funders be licensed by ASIC—and meet its expectations of competence, honesty, fairness, and efficiency. That may not seem like a tall order, but it’s not yet certain what hurdles must be cleared to obtain the required licenses. ABC Rural (Australia) reports that smaller funders have the most to fear in this new climate. Take, for example, the Australian Farmers' Fighting Fund, which was developed to fund cases with lasting impacts on growers. Hamish Brett lost his income when an import ban went into effect in 2011. Without funding, he'd have nowhere to turn. With funds from the AFFF, his share of the class action award covered his losses. Brett has stated that more than the money, he’s glad the government will no longer be able to destroy the livelihoods of people with the stroke of a pen. Litigation Finance is also the subject of a forthcoming parliamentary inquiry. Citing concerns that the number of class actions has nearly tripled since the popularization of litigation funding, Treasurer Josh Frydenberg has called for more oversight and increased regulation. He explained that third-party funding should be treated the same way as other financial services—which are generally licensed by the Australian Financial Services Commission. 
Litigation Finance News
Commercial

Correction to Earlier Article Regarding Epistar v. University of California

A previous post asserted that Longford Capital is funding Epistar's IP claim against the University of California. That information is incorrect. Longford is funding a separate IP claim filed by the Regents of the University of California, which is unrelated to Epistar's action against the university. The inaccurate post has been removed, and we regret the error.
Commercial

Class Action Against Oracle and Salesforce Backed by Innsworth

It may be the largest privacy-related class action in history, as The Privacy Collective gears up for a class action against Oracle and Salesforce. The action, which alleges the unlawful large-scale collection and storage of internet users' data in Denmark. Allegedly, the data was shared with multiple commercial and AdTech companies. Diginomics reports that the action is funded by Innsworth Litigation Funding, a London-based funder known for backing large commercial litigation and arbitration claims. Their portfolio of funded cases includes such names as Mastercard and Volkswagen. ILF’s involvement in this action is of particular interest, because Innsworth is owned and partially funded by Elliott Management Corp. Moreover, Elliott bought over $20 million of Oracle stock earlier this year, though they do not appear to have a financial interest in Salesforce. The case is being called one of the largest examples of unlawful data processing since the internet came to be. The case asserts that the rights to protect one’s privacy—including online data—is fundamental. While Oracle and Salesforce are not the only companies accused of mishandling user data, they are among the largest. Regardless of the individual players, this is the sort of case that was bound to happen at some point—given the inherent vagaries of laws surrounding privacy, consent, and data collection and processing. Privacy protection is also being examined in a similar case in the London High Court. Cadwalader partner Melis Acuner has stated that this type of case allows courts to aggregate the harm caused by data privacy violations. No doubt, these cases will set a lasting precedent no matter what the final outcome is. A statement from Salesforce explains that the company disagrees with the allegations and will demonstrate their lack of merit. Oracle also promises to defend against what the company calls “baseless claims,” though with more feisty language—using terms like “bad faith” and ‘shakedown litigation.’
Commercial

New Singapore Insolvency Laws Open Door to Third-Party Funders

What happens when a liquidator lacks the resources to pursue a debt? Often times, the debtor walks away from their responsibilities. That may be changing under Singapore’s new Insolvency Restructuring and Dissolution Act (IRDA)—which took effect just two weeks ago. The Act is part of a larger overhaul of Singapore’s insolvency legislation. Business Insider details that one key facet of the new law allows liquidators to utilize third-party funding to hold directors of firms to account. This change is expected to allow judicial managers to be appointed even after a business has collapsed.   The changes in the IRDA have been in the works for seven years—long before the COVID pandemic impacted businesses around the world. But the legislation takes on new significance, now that corporate insolvency and personal bankruptcy have skyrocketed. In the second quarter of this year alone, Singapore’s economy shrank over 13%. Meanwhile, applications for compulsory liquidation went up a shocking 70%. Governmental relief measures combined with encouraging non-legal mechanisms to settle conflict have led to an easing of new bankruptcies and insolvencies. The Act offers protection and increased options for debtors in temporary crisis—but also provides safeguards against abuse from opportunistic use of the Act’s provisions. It is believed that the IRDA is the final part of a planned revamping of insolvency laws designed to carve out a place for Singapore in the field of cross-border restructuring of debt. Insolvency laws must be fair to debtors and creditors in order to be effective. The ideal framework for insolvency should leave both parties feeling as though justice has been served. Allowance for third-party funding is a key element of the IRDA, but it is one tool in a larger toolbox. It’s expected that the non-recourse nature of the funds, along with the transparency the system provides, will help bolster Singapore’s status within the global marketplace.
Commercial

Anexo Group Secures Funding for Volkswagen Claim

For Liverpool-based Anexo Group, 2020 got off to a slow start. From Jan-June of this year, the legal services provider showed sales of GBP 36.625 million, down from 36.717 million this time last year. Share dividends are .5p a share, down from 1p per share last year. Still, the group is poised for a big finish to 2020. The Business Desk reports that Anexo Group has taken steps to expand the business while bringing in extra funds. In May, a share placing brought in GBP 7.5 Million. This was used to bring in new staff, and amp up the company's marketing presence. Meanwhile, their legal team, Bond Turner, is pursuing a class action regarding emissions against Volkswagen. A further GBP 2.1 million was raised from a litigation funder. This influx allowed the firm to seek out and sign on class action members in the case against Volkswagen. Litigation funding allows Bond Turner to devote resources to the case—which has the potential for significant returns—without impeding the firm’s overall budget. Like most businesses, Anexo Group has had to get creative in how they balance budgets, meet expenses, and adapt to the needs brought about by the COVID pandemic. Because litigation funding was available to them, they were able to continue pursuing meritorious cases, acquire new clients, and transition staff to remote work whenever possible. While COVID has brought about a reduction in receipts and increased costs—the firm expects more and larger settlements and collections in the second half of the year. Executive chairman Alan Sellers anticipates great things ahead, saying that Anexo has already hit its target of generating a profit this quarter. The firm has increased its overall number of cases, while maximizing the value of their existing backlog of cases. Sellers went on to assure shareholders that they are looking ahead with confidence.
Commercial

Twists and Turns in Tesla Case Against Former Employee

Martin Tripp, formerly with Tesla, is embroiled in a case with his former employer. The case, which began in 2018, accuses Tripp of stealing and disseminating multiple gigabytes of confidential trade secrets. In turn, Tripp denies all wrongdoing and describes himself as a whistleblower exposing evidence of vital safety concerns and company fraud. He is countersuing Tesla for defamation. Teslatati reports that recently, Tripp fired his legal team and intends to represent himself for the rest of the case. This announcement came on the heels of the revelation that Tripp’s litigation funder, The Funicular Fund LP (doing business as Cable Car Capital LLC) was short-selling Tesla stock. When news broke, Tripp took to Twitter to explain himself. His Tweets assert that he believed the funding for his case to be from a legitimate litigation funder. He also stated that it was his legal team who advised him not to divulge information about the funding. Recent documents published in Google Drive and released by Tripp detail that Cable Car Capital invested $150,000, and that a further $125,000 was requested. In response to the confidential information drop, Tesla filed an emergency motion to force Tripp stop publishing, and to stop “harassing” counsel for Tesla. This is in reference to his publishing an email from Jeanine Zalduendo, counsel for Tesla.