A consequential legal battle now before the UK Court of Appeal could have sweeping implications for litigation funders operating in the UK and beyond. The case centers on the enforceability of funding agreements that calculate funder returns as a multiple of the capital invested—a model widely used across the industry.

An article in the Law Society Gazette outlines how the appeal follows a High Court ruling that refused to strike out a claim challenging such a funding structure. The challenge argues that these agreements, which are not pegged to the damages recovered but instead to the amount of funding provided, could fall afoul of the UK's statutory definition of damages-based agreements (DBAs). If upheld, funders using a multiple-of-capital return model might be required to comply with the more stringent regulatory framework governing DBAs—potentially rendering many existing contracts unenforceable.

The outcome could reverberate across the legal funding landscape, particularly in collective actions, where such return structures are commonly deployed. Industry observers note that a ruling against funders would necessitate a wholesale reevaluation of how litigation finance deals are structured, priced, and disclosed, especially in the UK market.

Funders and legal practitioners alike are closely monitoring the case, viewing it as a test of legal clarity and commercial viability for the sector. The decision may also influence legislative and regulatory discussions already underway in the UK about how best to govern third-party funding.

This case underscores the regulatory and judicial uncertainties that still shadow the legal funding market, even as it matures. A ruling from the Court of Appeal could either reinforce current market practices or trigger a paradigm shift in funder-client agreements.

Siltstone Capital is taking its premier litigation finance conference, LITFINCON, global. The firm announced that its marquee event will now be hosted in three strategic locations—Houston, Singapore, and Amsterdam—marking a significant milestone in the evolution and internationalization of the litigation finance industry.

According to PR Newswire, the expansion builds on LITFINCON’s rapid growth since its inception in 2022, with the goal of fostering high-level dialogue among funders, lawyers, and investors worldwide. Each location was chosen for its significance in global legal markets: Houston remains the conference’s home base and a hub for U.S. litigation and energy disputes; Singapore offers access to the booming Asia-Pacific arbitration scene; and Amsterdam provides a gateway to European class actions and collective redress mechanisms.

Siltstone’s managing partner, William McMichael, emphasized that the global expansion is not just about geography but about shaping a more connected and mature litigation finance ecosystem. “We’ve seen the appetite for knowledge-sharing and networking among global stakeholders,” said McMichael. “LITFINCON Global is a response to that demand and a reflection of the sector’s continued growth.”

The conferences are scheduled to take place between late 2025 and early 2026, with Houston slated for February, Singapore in November, and Amsterdam to follow shortly after. Each event will retain LITFINCON’s hallmark focus on practical insights, deal-making, and candid conversation among industry insiders.

This expansion underscores the legal funding industry’s increasing globalization and mainstream acceptance. With funders and legal professionals seeking more sophisticated, cross-border opportunities, LITFINCON’s global footprint could shape the next phase of market development and standard-setting in litigation finance.

Viren Mascarenhas has officially launched Mascarenhas Law PLLC, a new boutique specializing in arbitration—covering construction, commercial, investment—alongside U.S. litigation and public international law. As a seasoned arbitrator and founding partner, Mascarenhas positions the firm to navigate complex cross-border and domestic disputes.

In a post on LinkedIn, Mascarenhas links to his new website, mascarenhaslaw.com, which states that the firm’s launch marks its commitment to delivering focused, high-caliber dispute resolution services across multiple legal domains. The full-service boutique offers expertise in construction arbitration and contractual disputes, commercial arbitration, investment treaty claims, U.S. court proceedings, and matters tied to international law. The announcement also highlights that Mascarenhas sits as an arbitrator, underscoring deep procedural insight and strategic acumen.

Mascarenhas Law exemplifies the growing trend toward smaller, specialist firms in the dispute resolution space. Its focus on both arbitral advocacy and arbitral leadership reflects evolving demands for flexible, expert-driven practices. The firm's launch could influence the boutique arbitration ecosystem by prompting more focused offerings and nuanced cross‑border competency in both advocacy and tribunal service.

Noah Wortman has joined the newly launched Walgate Litigation Management as Head of Strategy, collaborating closely with Steven Mash under the umbrella of Fladgate LLP. The firm focuses on delivering comprehensive administrative and strategic support for group claims, primarily in securities litigation. Its mission is to streamline case viability assessment, funder and ATE insurance submissions, institutionally sourced investment, and administrative operations—all designed to relieve fee earners and enhance case success rates.

In a LinkedIn post, Wortman notes that Walgate offers end‑to‑end services across the full life cycle of group litigation—from identifying and vetting actionable securities cases, through securing and managing funding relationships, to handling the administrative burdens that accompany progressing claims. With support from Fladgate’s Dispute Resolution team, the entity aims to ensure that strong claims against corporate misconduct—such as securities fraud, market manipulation, and regulatory violations—are supported to fruition.

Wortman emphasizes the venture’s commitment to access to justice, explaining that Walgate creates “pathways to recovery for global investors and consumers harmed by corporate misconduct.” By constructing a book of institutional investors and facilitating seamless collaboration between funders, insurers, and legal teams, Walgate seeks to remove financial and operational barriers that often stymie large-scale group actions.

This launch reflects a broader industry trend toward specialized litigation management firms that integrate strategic funding relationships with operational execution. Walgate’s model signals a shift toward greater institutional involvement in securities class actions and demonstrates how law firms are partnering with funders to scale group litigation capabilities.

Tensions between the litigation finance and insurance sectors escalated this week, as Burford Capital accused insurance giant Chubb of anti-competitive conduct for allegedly blacklisting entities affiliated with litigation funders. The clash centers on Chubb’s reported efforts to pressure law firms, brokers, and asset managers to distance themselves from litigation finance players, claiming such associations encourage excessive litigation.

An article in the Financial Times reports that Chubb, one of the world’s largest commercial insurers, has taken a hardline stance against third-party litigation funding (TPLF). The insurer allegedly warned that business relationships with firms connected to litigation funding could jeopardize access to its insurance services. In response, Burford Capital, the world’s largest litigation financier, has challenged Chubb’s actions as potentially violating antitrust laws by leveraging its dominant market position to suppress competition and restrict access to legal finance.

Burford argues that litigation funding serves a critical role in facilitating access to justice, especially for under-resourced claimants confronting well-capitalized defendants. The firm emphasized the legality of TPLF arrangements and framed Chubb’s actions as an overreach aimed at stifling a legitimate and growing financial sector. The dispute highlights deepening fault lines between two industries with starkly divergent views on the societal and economic impacts of litigation funding.

This confrontation arrives amid heightened scrutiny of TPLF, with insurers and some policymakers portraying it as a driver of “social inflation”—increased litigation costs and larger jury verdicts. Funders, on the other hand, maintain that these claims are overblown and self-serving.

The implications for legal finance are significant. If Chubb’s actions prompt regulatory review or litigation, it could shape the future of insurer-funder relations and the broader policy environment for litigation finance. The episode also raises the question: will other insurers adopt similarly aggressive stances, or will Burford’s challenge curb the momentum of this growing backlash?

A pivotal UK court case could reshape the future of litigation finance agreements, as Sony and Apple reignite legal challenges to widely used third-party funding models in large-scale commercial disputes.

An article in Law360 reports that the two tech giants are questioning the validity of litigation funding arrangements tied to multibillion-pound cartel claims brought against them. Their core argument: that certain litigation funding agreements may run afoul of UK laws governing damages-based agreements (DBAs), which restrict the share of damages a representative may take as remuneration. A previous Court of Appeal decision in PACCAR Inc. v. Competition Appeal Tribunal held that some funding models might qualify as DBAs, rendering them unenforceable if they fail to comply with statutory rules.

This resurrected dispute centers on claims brought by class representatives against Apple and Sony over alleged anti-competitive behavior. The companies argue that if the funding arrangements breach DBA regulations, the entire claims may be invalidated. For the litigation funding industry, the outcome could severely curtail access to justice mechanisms in the UK—especially for collective actions in competition law, where third-party financing is often essential.

The UK’s Competition Appeal Tribunal previously stayed the proceedings pending clarity on the legal standing of such funding arrangements. With the dispute now heading back to court, all eyes will be on whether the judiciary draws a clear line around the enforceability of funder agreements under current law.

The decision could force funders to rework deal structures or risk losing enforceability altogether. As UK courts revisit the DBA implications for litigation finance, the sector faces heightened uncertainty over regulatory compliance, enforceability, and long-term viability in complex group litigation. Will this lead to a redefinition of permissible funding models—or to a call for legislative reform to protect access to collective redress?

A Texas appeals court has ruled that a litigation funder cannot block attorneys from pursuing a fee dispute following a remand order, reinforcing the limited standing of funders in fee-shifting battles. In a 2-1 decision, the First Court of Appeals found that the funder’s interest in the outcome, while financial, did not confer the legal authority necessary to participate in the dispute or enforce a side agreement aimed at halting the proceedings.

An article in Law360 details the underlying case, which stems from a contentious attorney fee battle following a remand to state court. The litigation funder, asserting contractual rights tied to a funding agreement, attempted to intervene and stop the fee litigation between plaintiffs' and defense counsel. But the appellate court sided with the trial court’s decision to proceed, emphasizing that only parties directly involved in the underlying legal work—and not third-party financiers—are entitled to challenge or control post-remand fee determinations. The majority opinion concluded that the funder’s contract could not supersede procedural law governing who may participate in such disputes.

In dissent, one justice argued that the funder’s financial interest merited consideration, suggesting that a more expansive view of standing could be warranted. But the majority held firm, stating that expanding standing would invite unwanted complexity and undermine judicial efficiency.

This decision sends a strong signal to funders operating in Texas: fee rights must be contractually precise and procedurally valid. As more funders build fee recovery provisions into their agreements, questions linger about how far those rights can extend—especially in jurisdictions hesitant to allow funders a seat at the litigation table.

In a significant policy shift, Oklahoma has enacted legislation targeting foreign influence in its judicial system through third-party litigation funding. Signed into law by Governor Kevin Stitt, the two-pronged legislation not only prohibits foreign entities from funding lawsuits in the state but also imposes a $500,000 cap on non-economic damages in civil cases—excluding exceptions such as wrongful death. The new laws take effect November 1, 2025.

An article in The Journal Record notes that proponents of the legislation, including the Oklahoma Civil Justice Council and key Republican lawmakers, argue these measures are necessary to preserve the integrity of the state's courts and protect domestic businesses from what they view as undue interference. The foreign funding restriction applies to entities from countries identified as foreign adversaries by federal standards, including China and Russia.

Critics, however, contend that the laws may undermine access to justice, especially in complex or high-cost litigation where third-party funding can serve as a vital resource. The cap on non-economic damages, in particular, has drawn concern from trial lawyers who argue it may disproportionately impact vulnerable plaintiffs without sufficient financial means.

Oklahoma’s move aligns with a broader national trend of state-level scrutiny over third-party litigation funding. Lawmakers in several states have introduced or passed legislation to increase transparency, impose registration requirements, or limit funding sources.

For the legal funding industry, the Oklahoma law raises pressing questions about how funders will adapt to an increasingly fragmented regulatory landscape. It also underscores the growing political sensitivity around foreign capital in civil litigation—a trend that could prompt further regulatory action across other jurisdictions.