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IMF Bentham teams with Boies Schiller Flexner to provide US$30M capital and legal representation to parties with Vietnamese cross-border disputes

16 APRIL 2019:  Leading international dispute financier, IMF Bentham Limited (ASX:IMF) and renowned global litigation and arbitration firm Boies Schiller Flexner LLP (BSF) announce a collaboration to provide up to US$30 million in funding capital for cross-border disputes with a Vietnamese connection. This world-first collaboration combines IMF Bentham’s financial support with BSF’s unmatched legal and Vietnam expertise to benefit foreign investors or Vietnamese businesses in Vietnam-related disputes, including international arbitration or US/UK litigation.
Why Vietnam? Vietnam is poised to become Asia’s next economic powerhouse. It has one of the fastest-growing economies in the world and a population approaching 100 million. It is also attracting record foreign investments in major infrastructure, manufacturing, real estate, and energy projects. Leading local businesses are also beginning to expand their operations abroad. When disputes arise, they typically involve multi-national parties and multi-jurisdictional proceedings. These disputes are complex and costly, and they require legal representation with a mix of local, regional and international expertise. Very few international players offer such expertise or the flexible sources of dispute finance that litigation funding offers.  Until now. What does the IMF-BSF arrangement mean for clients? Together, IMF and BSF bring the capital and know-how required to pursue complex and high stakes Vietnam related claims. The arrangement brings clients:
  • fast and streamlined funding assessment (within 4 weeks)
  • legal representation by one of the world’s leading trial and arbitration law firms with unique Vietnam expertise
  • risk-free recoveries (neither BSF nor IMF Bentham recover any costs unless the claim is successful)
How will the arrangement work? IMF will fund preliminary investigations into potential claims and also subsidize BSF’s legal fees and external expenses (e.g., expert witnesses) for claims that proceed. Funding arrangements will be tailored for each specific case. IMF’s Chief Investment Officer (Asia), Tom Glasgow, said: IMF and BSF have had a strong working relationship on funded matters, and our US division successfully funded a matter with Mr Tran that resolved in 2016. Our new arrangement with BSF responds to increasing demand for legal representation in cross-border disputes involving Vietnamese parties and assets. It also reflects the growing appetite for third-party finance as a tool for resolving disputes in Asia.” Luan Tran, Partner at BSF said: “I lead a unique practice which combines the Vietnamese perspective (jurisdictional know-how, local contacts and language) with BSF’s global disputes expertise.  I recently lived and worked in Vietnam and Asia and regularly travel for work there. I have an intimate knowledge of the market. This collaboration with IMF allows foreign investors doing business in Vietnam, as well as Vietnamese companies doing business internationally, to pursue cases prosecuted by a leading law firm that previously might have been beyond reach for cost reasons.”  Quyen Ta, Partner at BSF said: “I have represented the top companies based in Asia and the United States in their highest-stakes intellectual property, class action, and trade secrets disputes—whether in state or federal courts, or in international arbitrations.  Clients appreciate that they can come to BSF for their Southeast Asian disputes, be able to retain experienced trial lawyers like me and Luan who are culturally and linguistically competent, and have access to a reputable litigation funding source.”

ABOUT IMF BENTHAM IMF is one of the leading global litigation funders, headquartered in Australia and with offices in the US, Singapore, Canada, Hong Kong and the UK. IMF has built its reputation as a trusted provider of innovative litigation funding solutions and has established an increasingly diverse portfolio of litigation funding assets.

IMF has a highly experienced litigation funding team overseeing its investments. We have a 90% success rate over 184 completed investments and have recovered over A$1.4 billion for clients since 2001.

For further information please see Tom Glasgow and www.imf.com.au. As Chief Investment Officer (Asia), Tom Glasgow leads the Asian investment activities and business expansion for IMF Bentham. Prior to joining IMF Bentham, Tom was a senior member of market leading international arbitration and disputes practice in Asia, where he handled complex multi-jurisdictional commercial matters for leading global businesses across a range of sectors.

ABOUT BOIES SCHILLER FLEXNER

Boies Schiller Flexner is a firm of internationally recognized trial lawyers, crisis managers and strategic advisors known for their creative, aggressive and efficient pursuit of success for the firm’s clients. The firm has an established record of taking on and winning complex, ground-breaking and cross-border matters in diverse circumstances and industries for many of the world’s most sophisticated companies. The firm has 15 offices located throughout the United States and in London. It is also the only AmLaw firm with two Vietnamese-speaking partners with extensive first-chair trial and arbitration experience.

For further information please see Luan TranQuyen Ta and Boies Schiller Flexner.

Luan Tran has more than 20 years of experience in international arbitration. He has handled, both as counsel and arbitrator, some of the most significant Vietnam-related international arbitration matters. He co-authored the Vietnam chapter for two major international publications. Prior to BSF, Luan was an international arbitration partner at a prominent Vietnam-based law firm. He was also an early member of the international arbitration practice at Quinn Emanuel Urquhart & Sullivan. He is currently a member of the AAA-ICDR’s Council and Asia Advisory Committee.He has three law degrees, including one from Harvard Law School. Quyen Ta co-leads Boies Schiller Flexner’s Bay Area practice. She is a graduate of UC Berkeley School of Law and is a highly sought-after trial lawyer who has more than 15 years of experience litigating high-stakes disputes in the United States and in international arbitrations. Her practice has included representing top Asian-based companies, such as Taiwan Semiconductor Manufacturing Company, in its most sensitive cross-border matters, and which has included litigating jurisdictional issues throughout the United States. Her current clients include top Fortune companies, as well as Asian-based companies such as VNG Corporation (Vietnam) and Rakuten (Japan).

Journalist Seeks Litigation Funding in Al Jazeera / Muslim Brotherhood Case

Journalist Peter Greste, formerly of Al Jazeera's Egyptian bureau, was imprisoned by the Egyptian government for coordinating with The Muslim Brotherhood, a group branded a terrorist organization  by Egyptian authorities. After spending 400 days in prison and then being deported to Australia, Greste is now seeking litigation funding for a lawsuit against Al Jazeera, his former employer, whom he says lied to him about their relationship with The Muslim Brotherhood and caused him to be incarcerated in Egypt. As reported in Ahram Online, Greste, along with two other members of Al Jazeera's Egyptian bureau, were imprisoned for seven years for being members of The Muslim Brotherhood and fabricating news stories which supported the terrorist group's agenda. The Muslim Brotherhood briefly controlled the Egyptian government, before a coup by General Abdel Fattah el-Sisi overthrew the regime, imprisoning its leaders and declaring them a terrorist organization. Al Jazeera, the Qatari state-owned media outlet, had a cozy relationship with The Muslim Brotherhood. Greste claims he had no knowledge of Al Jazeera's links to the organization, and now intends to sue the news organization for negligence which resulted in his incarceration by Egyptian authorities. Greste is seeking $1MM in litigation funding to support his legal claim, which he intends to file from Australia, where he is currently residing after having been deported by Egyptian authorities a little over a year into his sever-year sentence. In March 2018, 18 members of the house of representatives, along with Senator Ted ‎Cruz, issued a letter to the US Attorney General ‎calling for Al Jazeera to be labelled a “foreign agent." Currently, the government of Qatar is under pressure by neighboring Arab countries including Saudi Arabia, Egypt and the UAE to shut down Al Jazeera, which they claim supports and promotes terrorism.
The LFJ Podcast
Hosted By Yasmin Mohammad |
On this episode of The Litigation Finance Podcast, we sat down with Yasmin Mohammad to discuss international arbitration, specifically the role that arbitral institutions are playing as relates to litigation funding. We also discussed the rise of litigation funding in the Middle East, and why jurisdictions like the UAE, Saudi Arabia and Qatar are now starting to welcome funding with open arms. [podcast_episode episode="3727" content="title,player,details"]

Financial Poise™ Announces “Three Case Studies,” a New Webinar Premiering May 8th at 3:00 PM CST through West LegalEdcenter™

This webinar is co-produced by West LegalEdCenter™ and part of the "Commercial Litigation Funding 101" series. It will feature Jeremy Waitzman (Sugar Felsenthal Grais & Helsinger LLP); Evan Fried (Greybridge Capital LLC); Ken Epstein (Bentham IMF); and Joel Cohen (Stout). As the legal funding market evolves, so too do the legal/ethical jurisprudence, strategic decisions inherent in utilizing funding, financial instruments used for funding, and nature of funder/funded relationship. In this webinar, a panel of experienced litigation funding professionals examine three live legal funding deals, and discuss how they impact considerations of (i) disclosure of litigation funding, (ii) fee-splitting and non-attorney ownership of law firms, and (iii) financial engineering of innovative funding deals. To learn more, click here. The webinar will be available on-demand after its premiere. As with every Financial Poise Webinar, it will be an engaging and plain English conversation designed to entertain as it teaches. About Financial Poise – Financial Poise has one mission: to provide reliable plain English business, financial and legal education to investors, private business owners and executives, and their respective trusted advisors. Financial Poise content is created by seasoned, respected experts who are invited to join our Faculty only after being recommended by current Faculty Members. Our editorial staff then works to make sure all content is easily digestible. Financial Poise is a meritocracy; nobody can "buy" their way into the Financial Poise Faculty. Start learning today at https://www.financialpoise.com/

SPONSORED POST: Segue Cloud Services Multi-Funding Case Study

The Following sponsored post was contributed by Segue Cloud Services. The Challenge Multi Funding USA is a pre-settlement finance provider that serves attorneys and their plaintiffs. The company has been serving clients for nearly a decade, providing millions of dollars in financial support in jurisdictions like New York, New Jersey, Connecticut, Vermont, Texas, California, Florida, and Washington. Through its pre-settlement funding services, plaintiffs can access much needed funds during the often lengthy settlement process as they wait for their cases to be resolved. When a case concludes in favor of the plaintiff, Multi Funding recoups its investment at a preferred rate of return. Managing the pre-settlement finance process can be labor-intensive, complex, and expensive. It involves an array of ongoing administrative tasks, from initial case intake, to underwriting and approvals, to managing contracts and case documents, to the regular tracking of case developments. And all key stakeholders need to be apprised of each occurrence as it unfolds. Like most providers, Multi Funding had relied on staff members to manage all the workflows and processes associated with pre-settlement funding. This meant manually inputting all case data into spreadsheets, completing forms, generating documents and reports, and notifying the parties involved whenever a milestone or change in dispensation occurred. And when a change occurs—as is usually the case—much of the entire process has to be repeated. As a result, Multi Funding’s team devoted countless hours to updating records and changing data, causing added expense and creating the potential for unnecessary errors in the process. “The amount of time and work required to usher a pre-settlement funding case from intake to settlement can be overwhelming. It can often take four days just to manually underwrite a funding application,” said Alex Reyes, customer service specialist, of Multi Funding. “Every time we have to manually change or update information, it can result in delays and increases the potential for human error, which can quickly steamroll into problems for our clients.” As Multi-Funding handled more funding requests, it recognized that it required a more efficient way to track, manage, and organize the painstaking pre-settlement process. The Solution After doing some research on potential technology providers, Multi Funding contacted Segue Cloud Solutions, an innovative software company that developed a technology platform specifically for the pre-settlement process. The solution to enables legal finance providers to enhance productivity, streamline daily workflows, reduce costs, and speed time-to-market. Multi Funding consulted with Jack Closs, project supervisor at Segue. “When we spoke with Multi Funding’s administrators, it was clear that our solution could deliver a range of efficiencies to expedite their existing processes, diminish their labor requirements, and drastically reduce the potential for human error,” said Closs. “Their spreadsheets were cumbersome and prohibitive, making it difficult for staff members to retrieve the case information they needed at any given moment. Our automation software would allow them to easily track and access everything from settlement milestones, to interim pay-off amounts, to correspondence with funding sources and changes in case dispensation, all from a single, intuitive interface.” Segue’s secure, robust platform automatically retrieves data to populate online forms and other documentation, generating material specific to each individual client according to established rules and permissions. The software automatically notifies staff, attorneys, paralegals, and clients of changes in status at various stages of a case. It organizes and centralizes all contact information, pay-off details, and case data, and generates documents such as contracts, letters, and reports with a click of a mouse. The solution is built on the industry-leading Salesforce CRM platform, making it easy to deploy in Multi Funding’s existing environment. In addition, the platform’s document generation capabilities are powered by Conga, a major provider of digital document management. The Outcome Multi Funding USA has processed thousands of loans through the platform. Through this solution, they’ve been able to increase productivity by some 15 percent, while mitigating costly mistakes. In addition, the solution has reduced the firm’s cost of operations, decreasing labor requirements and helping to speed more cases through their paces—without having to add personnel or extraneous infrastructure. And since Multi Funding accesses Segue’s technology through a cost-effective subscription with no per-transaction fees, return on investment is swift and considerable. “In a complicated environment like ours, Segue provides a much more efficient solution compared to manual administration. Underwriting processes that once took hours or days can now be turned over in about eight minutes,” confirmed Reyes. “Before we used Segue, we’d frequently tell clients we’d have a contract to them by the next week. Now we can produce all the documentation in less than an hour.” When asked about the value of the Segue pre-settlement funding solution, Multi Funding says it transcends traditional cost and organizational savings. “The ability to have an extensive range of automatically updated case information readily accessible throughout the pre-settlement process is a huge advantage,” concluded Reyes. “It creates an instant competitive edge for our firm by enabling us to provide fast and efficient service to our clients.”

Dalma Capital CEO Labels Litigation Funding the “Most Attractive” Asset Class

Zachary Cefaratti, the CEO of Dubai-based Dalma Capital is classifying litigation funding as "the most attractive asset class we've seen." Cefaratti loves the risk/return profile, coupled with the relatively short lifecycle of the investment. As reported in Zawya, Cefaratti was speaking on a panel at an AIM summit for alternative investors when he lauded the industry, and went on to say that he predicts the market size will double over the next five years, thanks to its structure as a non-correlated asset. Cefaratti asserted that the funding market is negatively correlated with economic downturns which would imply that the industry will see a spike in activity post-recession. That is what took place in the wake of The Great Recession, but there were far fewer funders in play back then. It remains to be seen if the same will occur the next time around. According to Cefaratti, the total addressable market (TAM) for litigation funding is around $100-$150B, but there's only around $10B in funding currently being deployed. With a turnover period of 2-4 years, that means only 5% of TAM is being funded at best.

YieldStreet Expands into Art Financing With $170MM Athena Acquisition

YieldStreet, the digital platform for crowdfunded alternative investments including litigation finance and real estate, is expanding into art financing with the purchase of Athena Art Finance for $170MM. According to TechCrunch, Athena is YieldStreet's first acquisition, and provides immediate expansion into a growing sector, that of art financing. Athena, which was founded in 2015 and until the sale was controlled by private equity behemoth Carlyle Group, provides loans to art dealers, collectors, and museums and galleries to buy fine art and other collectibles. The company has collected over $200MM in fees on originations, and has so far sustained no credit losses. A recent Artnet study valued the art market at around $20B annually. The majority of that is being financed by private individuals, as opposed to companies or institutional investors, however with YieldStreet's participation in the market, that could soon change. YieldStreet - which has seen upwards of $650MM invested on its platform - made a name for itself offering retail investors exposure to asset classes traditionally limited to wealthy investors and institutions. Those include certain real estate investments and litigation finance deals. Cynthia E. Sachs will continue as Athena's CEO under YieldStreet's management.

Validity CEO Claps Back at U.S. Chamber

Ralph Sutton, CEO of Validity Finance, has issued a bristling, statistics-laden response to the U.S. Chamber's recent calls for regulation of the litigation finance industry. Writing in CFO.com, Sutton explains that the growing legal threat to American businesses is cost, not litigation funding. He cites a BTI Consulting report which found that litigation costs have risen between 4%-8% annually over the last three years. Additionally, Sutton points out that it takes two years on average to bring a civil case from filing to trial. That adds up to a pretty sizable check that needs to get written, and we haven't even reached opening arguments yet. Sutton contends that the Chamber should be more concerned with the above statistics, and how they impact business affairs, than with a potential solution to the growing problem of access to justice - that being third party funding. In fact, the Chamber's efforts - if successful - would actually harm business as they would further buttress the ongoing trend of cost increases. Sutton also called out the recent letter sent to the Committee on Federal Rules of Civil Procedure by the U.S. Chamber, on behalf of 30 GCs and in-house counsel of major corporations. As Sutton points out, the signatories of the letter stand to benefit from the reduction (or outright elimination) of litigation funding in the legal system, given that they constitute a 'who's who' of Fortune 500 companies. Ironically, it should be the Chamber standing on the side of the 99.7%, Sutton claims. Instead they're backing Goliath over David.

Vannin Capital Appoints Regional Managing Directors In Australasia

Vannin Capital, the global expert in legal finance, has today announced the appointment of Pip Murphy and Tom McDonald as Regional Managing Directors of the Australasia region. 

Located in Vannin’s Melbourne and Sydney offices respectively, Pip and Tom will have joint responsibility for leading Vannin’s Australasian business and team, which includes Managing Directors Adam Silverman (commercial litigation and arbitration) and Steven Taylor (class actions and commercial litigation).

Pip joined Vannin in 2016 from leading global law firm Baker McKenzie, where she was a Partner in the dispute resolution team and head of the firm’s Asia Pacific Risk and Crisis Management Practice Group. Pip brings to the role extensive management and leadership skills and experience managing large scale commercial disputes in Australia and internationally. Pip is a Member of the Australian Institute of Company Directors and a Director of the Association of Litigation Funders of Australia.

Tom also joined Vannin in 2016 from global law firm Ashurst LLP, where he was a Senior Associate in their market-leading insolvency team.  A highly regarded practitioner, Tom has a wealth of experience in large scale commercial litigation and complex insolvency matters and he has a natural ability to cut quickly through any complex legal issues. Tom is a current member of the executive of the Federal Litigation Section Member of the Law Council of Australia.

Commenting on the appointments, Vannin Capital CEO Richard Hextall said: “Both Pip and Tom have been integral to our success in Australia to date, demonstrating truly exceptional contributions to our business, as well as our clients and partners. With the breadth of their combined experience and exceptional reputation in the market, Vannin is in a strong position to capitalise on the opportunities that exist in Australia, New Zealand and Asia.”

About Vannin Capital

Established in 2010, Vannin Capital is a global expert in the provision of funding to support individuals, corporate clients and law firms in the successful resolution of high-value litigation and arbitration claims. From single case funding to portfolio finance, we offer creative capital solutions that are tailored to our clients’ needs. Our global team of legal and financial experts cover the key commercial litigation and arbitration centres from our offices in London, Jersey, Paris, Bonn, New York, Washington, Sydney and Melbourne.

More than just capital, we combine global experience with local knowledge to deliver a high standard of service and expertise to our clients around the world. A major player in the legal finance market, we are a member of the Association of Litigation Funders of England and Wales (ALF), conducting our business to a high standard in line with its code of conduct.