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Announcements Commercial

Litigation Capital Management (AIM:LIT) announces conditional settlement of litigation project

Litigation Capital Management Limited (AIM:LIT), a leading international provider of litigation financing solutions, announces that a conditional settlement has been reached in respect of one of its litigation projects. The conditional settlement is expected to contribute a gross profit to the Company of approximately A$2.7million to A$3million, with all capital invested by LCM also being recovered. The project relates to an open class action commenced in the Federal Court of Australia on behalf of certain persons that suffered loss as a result of making investments in an allegedly fraudulent investment scheme. The terms of the settlement areconfidential, andthe settlement is subjectto conditions whichinclude Court approval. LCM will make a further announcement with the financial metrics of this litigation project once the conditions of the settlement are met. Class actions represent one of several types of litigation projects that LCM provides funding for in addition to single-case and portfolio funding, as well as international arbitration, commercial claims and claims arising out of insolvency. Patrick Moloney, CEO of LCM, said: “The conditional settlement of this litigation project is further demonstration of LCM’s experience and expertise at funding class actions in Australia and our ability to achieve strong returns on invested capital. Class actions constitute a significant part of LCM’s heritage, and we see these cases continuing to make up part of our portfolio whilst we continue to diversify our portfolio by project type, claim size and geography.” Litigation Capital Management Patrick Moloney, Chief Executive Officer Nick Rowles-Davies, Executive Director Canaccord (Nomad and Broker) Bobbie Hilliam / Emma Gabriel Hawthorn Advisors Lorna Cobbett / Zinka MacHale Tel: 020 7523 8000 lcm@hawthornadvisors.com Tel: 020 3745 4960 About LCM Litigation Capital Management (“LCM”) is a leading international provider of litigation financing solutions. This includes single-case and portfolio; across class actions, commercial claims, claims arising out of insolvency and international arbitration. LCM has an unparalleled track record, driven by effective project selection, active project management and robust risk management. Headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM has been listed on AIM since December 2018, trading under the ticker LIT. www.lcmfinance.com
Announcements Consumer

Legal-Bay Lawsuit Funding Expanding Mass Tort Case Funding List

LOS ANGELES, June 27, 2019 /PRNewswire/ -- Legal-Bay, LLC, The Pre Settlement Funding Company, announced today that they will be expanding their list of mass tort lawsuits available for funding. Legal-Bay is known as one of the best lawsuit funding companies when it comes to mass tort cases. Legal-Bay works directly with most of the top mass tort law firms nationwide to provide the best pre-settlement cash advance rates for their clients, and have recently expanded their mass tort department to further provide funding for brokers across the country. If you are involved in a pending lawsuit and are looking for a cash advance now before your case settles, you can fill out an application form at the company's website: http://lawsuitssettlementfunding.com   Mass Tort cases typically take a while to go through the courts, and values of these cases can sometimes be unknown. However, Legal-Bay's experienced underwriting team in mass tort litigations is able to quickly evaluate the claims and provide a needed cash advance. Plaintiffs who have had issues with the below cases could be eligible to receive pre-settlement funding in as little as 24 – 48 hours.  You must have a lawyer to obtain funding. If you do not have a 3M law firm or attorney on any of the below cases, feel free to contact Legal-Bay and they can put you in touch with a top 3Mear plug lawyer.
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Chris Janish, CEO of Legal-Bay commented, "We are aggressively funding a multitude of active mass tort cases at this time. We have always been a leader in the industry due to our experience. We now have opened the door for the first-time to many brokers who have clients that need presettlement funding on both mass tort and personal injury cases as well." If you are a broker or law firm looking to partner with Legal-Bay to obtain the best rates for plaintiff presettlement cash advances, feel free to call: 973.857.1000. To apply now, go to the company's website at: http://lawsuitssettlementfunding.com
Announcements Commercial

New Research: CFOs Are Ready To Help GCs “Recession-Proof” The Legal Budget

NEW YORK, June 27, 2019 /PRNewswire/ -- Burford Capital, the leading global finance and investment management firm focused on law, today announced the results of a groundbreaking new survey that asked Chief Financial Officers to share their views on how companies deal with the billions they spend annually on legal disputes. 2019 Managing Legal Risk Report: A Survey of CFOs and Finance Professionals reveals that CFOs see this as an urgent business challenge—especially ahead of a potential recession that will put pressure on companies to use their cash wisely—and that they are eager to partner with General Counsels to embrace innovative new solutions, including legal finance. Christopher Bogart, Burford's CEO, said of the research: "As a former GC of a Fortune 20 company, I know that CFOs don't love legal spending. However, Burford's research shows that CFOs, particularly at large companies, embrace legal finance as a tool to manage and improve control over legal spending, even more so ahead of a possible recession when it is so important to create certainty around corporate budgets." He continued: "CFOs intuitively grasp that legal finance is simply corporate finance for law, no different from the financing they use to pay for other corporate costs, and a far better alternative than paying out-of-pocket or abandoning valuable legal assets." Key findings, based on data from 502 CFOs and senior finance professionals in the US, UK and Canada, include:
  • Companies are losing millions to abandoned claims and unpursued recoveries
    A majority of finance professionals (63.0%) say their companies have abandoned meritorious claims given fears of adversely impacting the bottom line; over three fourths (77.6%) say their companies have unenforced judgments and uncollected awards valued at $10 million or more.
  • A recession will cause legal budgets to shrink and legal finance to grow
    A majority of CFOs and senior finance professionals (66.9%) report that in the event of an economic downturn they would advocate reducing legal budgets; still more (67.3%) say that a recession would make them more likely to advocate using legal finance.
  • CFOs and finance professionals see legal finance as a tool to generate value
    The vast majority of CFOs and finance professionals (94.7%) are likely to recommend legal finance. The most commonly cited reason for using legal finance is to "pursue claims that will bring value to the business." Finance professionals at companies with over $10 billion in annual revenues say the top benefits of legal finance are "investing in growth/using capital wisely", "preserving capital for other business priorities", and "reporting and accounting benefits".
  • Following growth in the last two years, legal finance looks poised for more
    Nearly two-thirds (65.1%) say their companies are "very likely" to use legal finance in the next two years. This trend is even more pronounced at companies with annual revenues of more than $1 billion (71.4%).
The full 2019 Managing Legal Risk Report: A Survey of CFOs and Finance Professionals is available on Burford's web site and will be discussed in two upcoming webcasts; see Burford's event calendar for details. About Burford Capital Burford Capital is a leading global finance and investment management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the London Stock Exchange, and it works with law firms and clients around the world from its principal offices in New York, London, Chicago, Washington, Singapore and Sydney. For more information about Burford: www.burfordcapital.com.
Announcements Commercial

Vannin Capital’s Ania Farren Appointed as New Chair of ICC’s Arbitration Program

John Beechey, one of the biggest names in international arbitration and former President of the ICC International Court of Arbitration, is retiring from his position as Chair of the International Chamber of Commerce's (ICC's) Arbitration programme in the UK, passing the torch on to his successor, Ania Farren, Managing Director of Vannin Capital. Ania will take up the reins from 20th June, supported by Iain Quirk from Essex Court Chambers and Guy Pendell from CMS, whom we welcome as a new Vice Chair in the UK leadership team.

John has been pivotal in the transformation of ICC’s UK arbitration programme since 2015, appointing a raft of global arbitration experts to the UK committee, setting up a new Selections Subcommittee to improve UK nominations to the ICC International Court of Arbitration and appointing Iain Quirk as UK Arbitration Consultant. John has long been a driver for positive change and a champion of arbitration in the UK, helping to bring on a new generation of leaders into the field, promoting the role of women and ensuring that the UK remains the number one contributor of arbitrators to the ICC International Court of Arbitration.  He steps down as chair of the Arbitration programme, but will remain a member of the UK Board of ICC.

ICC’s UK programme provides a unique forum to build national consensus on international rules for arbitration, nominate representatives to ICC’s international fora, promote ICC products and services and manage the nominations of arbitrators to the Court.

Ania Farren – previously Vice Chair – has been appointed as John’s successor. A highly regarded lawyer internationally, Ania was appointed to the Arbitration & ADR Committee in 2015 and has been Vice Chair of the Committee since 2017. ICC looks forward to Ania carrying on John’s good work and bringing her own fresh approach and experience to the role. Guy Pendell (CMS) has taken up the position of new Vice Chair and will serve alongside Iain Quirk (Essex Court Chambers) as the second Vice Chair. Together, the UK will be led by next generation arbitrators under the leadership of the first female UK chair.

Also joining the Committee are Charlie Caher (WilmerHale), Kim Franklin QC (Crown Office Chambers), Milo Molfa (Cleary Gottlieb), Richard Smith (Allen & Overy), Ricky Diwan QC (Essex Court Chambers), Sara Masters QC (20 Essex Street) and Simon Rainey QC (Quadrant Chambers).

The Committee is busy building on the success of London International Disputes Week in May and working on the next ICC Arbitration & ADR Commission meeting in Paris in the autumn, to be followed by the annual ICC Arbitration Conference in London in November 2019.

ICC is the world’s largest business organisation representing 45 million companies and 1 billion employees from all sectors and company sizes in over 100 countries. We are the only business organisation with UN Observer Status. ICC United Kingdom is the representative office of ICC in the UK and works with British business groups worldwide to represent the voice of British business at inter-governmental level - the United Nations, G20 and World Trade Organization. For further information, please visitwww.iccwbo.uk

Announcements Consumer

Legal-Bay Lawsuit Funding Announces 50″ HDTV Promotion for Month of July

NEWARK, N.J., June 25, 2019 /PRNewswire/ -- Legal-Bay Lawsuit Funding announced that they have recently broken their own record for presettlement funding last month. The premier lawsuit settlement funding company credits the increase in sales to their quick turnarounds, their effective marketing, and their talented team of underwriters who are able to offer the best customer service in the industry. Legal-Bay provides presettlement funding for almost any type of lawsuit, including motor vehicle accidents, medical malpractice, personal injury, wrongful conviction, death, or termination, sexual harassment/abuse or discrimination in workplace, and any civil cases where the plaintiff has already retained an attorney. Legal-Bay has been a proven leader in funding a wide variety of lawsuits due to their over 15 years of expertise. If you have an active lawsuit and need legal funding, Legal-Bay may be able to assist you immediately. To apply online, please visit: http://lawsuitssettlementfunding.com or call the company's toll free hotline at 877.571.0405.    Chris Janish, CEO, commented, "With the launch of our new TV commercial, and our record month in funding, we want to reward one of our lucky new clients in July with a new 50-inch HDTV. Our customer service team prides themselves on delivering to our clients, and this is another way to show our appreciation to clients that provide us with the opportunity to fund them in their time of need." View it here: LEGAL-BAY TV COMMERCIAL In order for a chance to win the free TV, you must fund between July 1 and July 31.  Any and all clients that fund for a minimum of $2K for the month will be eligible for a random drawing the first week of August. Legal-Bay's non-recourse programs are not a lawsuit funding loan, lawsuit loans, presettlement loan, presettlement loans, pre-settlement loan, or pre-settlement loans as many clients may think. Pre-settlement funding is merely an immediate cash allowance given in advance of a plaintiff's impending monetary award. The cash advance is risk-free, as the money does not need to be repaid should the recipient lose their case. To apply right now, please visit: http://lawsuitssettlementfunding.com or call toll-free at: 877.571.0405 where agents are standing by. SOURCE Legal-Bay LLC
Commercial Special Features

Flying High: LCM Lands Portfolio Funding Deal with Aviation Company

One of LCM’s key areas of focus since its IPO has been the origination and execution of corporate portfolio transactions. The recent announcement of a portfolio funding partnership with a major aviation company, in which LCM will finance 38 worldwide disputes and contractual claims arising from the operations of the company for an initial 5-year rolling period, underscores the funder’s commitment to its corporate portfolio funding strategy. The transaction was led by Executive Vice Chairman Nick Rowles-Davies, who leads LCM’s EMEA team, comprised of some of the most experienced practitioners in the industry at corporate portfolio funding. Thanks to Rowles-Davies’ leadership and the team’s expertise, this is the second corporate portfolio transaction funded by LCM in past 12 months, and the first originating from the global cooperation agreement with a leading international law firm announced in March. The first of LCM’s portfolio transactions was announced in October 2018, and was in the building and construction sector. LCM remains one of only a handful of funders to have completed such a transaction type. The funder also currently has eight other portfolio deals in the pipeline. Perhaps no better evidence could be proffered of litigation funding’s growing awareness and understanding amongst corporate clients – at least within certain capital-intensive industries. As Rowles-Davies puts it: “Everyone has heard of ‘litigation finance,’ but they don’t necessarily understand what it entails. To many, it still means bringing big claims against corporates and they don’t appreciate that it is a form of financing that can support a company by monetizing its legal assets, removing the risk of litigation, increasing EBITDA and keeping costs off the balance sheet. Some sectors are certainly more aware of the benefits available through the use of litigation funding and these are typically businesses in sectors that are high-volume, low-margin; for example, aviation, construction and outsourcing." By financing multiple claims at once, funders like LCM reduce their risk profile, which results in a more attractive pricing structure for the client than when cases are funded on a one-off basis (one-off cases carry binary risk, therefore the cost of capital is higher). On this latest transaction, LCM has maintained the optionality to extend the number of cases it will finance, as well as the cumulative size of the financing available. “When we are structuring corporate portfolios for our clients, we look to be as flexible as possible and try to directly address the problem that they are looking to solve by providing a bespoke solution,” Rowles-Davies adds. “This provides businesses with complete optionality as to how they fund their disputes, moving to a position of using funding out of choice, rather than necessity. This is totally different from a single case situation where often a distressed and impecunious party is being funded.” London-based law firm Clyde & Co. helped arrange the funding partnership between LCM and the unnamed airline. This type of arrangement underscores the win-win nature of a partnership between a dedicated funder and an individual law firm. According to Rowles-Davies, this type of partnership “is not that common, but I suspect we will see more arrangements like it as funding becomes more widely used.” Rowles-Davies is quick to point out, however, that LCM has relationships with multiple law firms, and that agreements such as its partnership with Clyde & Co. don’t guarantee exclusivity. “This is about picking your partners carefully – we want to work with people who understand how LCM operates and what we’re looking for, and it takes time to develop that understanding.”
Commercial

IMF Bentham launches new US$500 million Fund in response to increased worldwide demand for dispute resolution finance

SYDNEY, AUSTRALIA 20 JUNE 2019: IMF Bentham (ASX:IMF) (operating in the US and Canada as Bentham IMF) announces the launch of a new US$500 million fund (‘Fund 5’) to underwrite non-US disputes around the world.

Fund 5 is IMF’s second non-US Fund and is being launched only twenty months after the launch of the first non-US Funds (‘Funds 2 & 3’) and only five months since Funds 2 & 3 were upsized in January 2019. Fund 5 also closely follows the launch in November 2018 of IMF’s second US Fund (‘Fund 4’). IMF is increasing its fund capacity in direct response to the exponential growth in demand for dispute resolution finance around the world and IMF now has close to A$2 billion in combined funds under management globally. IMF Managing Director and CEO, Andrew Saker says: “IMF is experiencing strong market demand for funding across all jurisdictions. Since 2015 IMF has recorded an 85% increase in the number of non-US funding applications and a 149% increase in US funding applications. Demand for dispute resolution finance is growing as a result of increased awareness, the increasing costs of arbitration and litigation and regulatory changes in some jurisdictions which now allow parties to seek dispute resolution finance. Demand is particularly strong in Asia and Canada where dispute resolution finance is still relatively new but it is becoming a mainstream global financial product.” How will the capital be invested? Fund 5 will invest in disputes outside the US, including Australia, Asia, Canada and the EMEA region, providing finance for law firms, companies, groups and individuals, across a broad range of dispute types including insolvencies, group actions, international arbitration and commercial litigation. Who are the investors in Fund 5? Fund 5’s initial size is US$500 million and investors have the option to roll into a successor fund on the same terms, to increase the overall new capital commitments to US$1 billion.  IMF committed US$100 million in cash to Fund 5 and remaining funds were contributed by external investors, reflecting the strong investor confidence in IMF’s business. IMF is increasingly a fund manager and investment adviser whose investors include endowment funds, foundations, investment professionals and family offices. The principal external investors in Fund 5 are:

•     Funds managed by, and investors represented by, Partners Capital Investment Group, LLP (Partners Capital). Partners Capital (www.partners-cap.com) is a leading outsourced investment office based in London, Boston, New York, Hong Kong and Singapore which manages over US$24 billion on behalf of endowments, foundations, investment professionals and family offices.  Partners Capital’s Phoenix II Fund is also an investor in IMF’s Fund 2 and Fund 4.

•     Funds managed by Harvard Management Company (Harvard), Amitell Capital and Balmoral Wood. Harvard is a US based manager of institutional investment funds and funds managed by Harvard are also invested in IMF’s Fund 4. Amitell Capital is a Singapore based private investment firm, which is also an investor in IMF’s Fund 3 and Fund 4. Balmoral Wood is a Canadian fund-of funds investor specialising in dispute resolution finance.

How is Fund 5 structured? Fund 5 is an exempted limited partnership incorporated under the laws of Cayman Islands formed for the purpose of making investments in non-US dispute resolution finance investments via wholly owned subsidiary entities. IMF Bentham Cayman Advisory Services (IMF Advisory), a newly established wholly owned subsidiary of IMF, is the appointed investment advisor of Fund 5. Further details are available here.  About IMF Bentham Ltd IMF is one of the leading global dispute resolution funders, headquartered in Australia and with offices in the US and Canada (where it operates as Bentham IMF), Singapore, Hong Kong and the UK. IMF has built its reputation as a trusted provider of innovative funding solutions and has established an increasingly diverse portfolio of dispute resolution funding assets. IMF has a highly experienced dispute resolution funding team overseeing its investments. We have an exceptional success rate over 187 completed investments and have recovered over A$1.4 billion for clients since 2001.  For further information regarding IMF and its activities, please visit www.imf.com.au.

Consumer

RD Legal Files Opening Brief in 2nd Circuit Court of Appeal

Consumer legal funder RD Legal has filed its opening brief in the 2nd Circuit Court of Appeal. The funder is appealing Judge Loretta Preska's June 2018 order to void its funding agreements with ex-NFL players and members of the September 11th Victim's Compensation Fund, on the basis that the funding agreements were in effect assignments, and therefore void under the anti-assignment clause of the NFL settlement agreement, and the federal Anti-Assignment Act. As reported in National Law Review, Judge Preska subsequently found that the Consumer Financial Protection Bureau (CFPB) cannot bring its case against RD Legal because its structure of being led by a single director who is only removable for cause by the President of the United States is unconstitutional. Judge Preska dismissed the CFPB from the case, and several weeks later followed that up with a dismissal of the New York Attorney General (NYAG) from the case. RD Legal is now appealing Judge Preska's ruling that its transactions violate the anit-assignment clauses. Recently, the 9th Circuit upheld the CFPB's constitutionality, and the 5th Circuit is hearing oral arguments in another case involving the organization's constitutionality. RD Legal is asking the 2nd Circuit to uphold Judge Preska's decision that the CFPB's structure is unconstitutional.
Commercial

Litigation Funding for the Restaurant Industry

Recently, Conagra Brands and Kraft Heinz sued Tyson Foods and other chicken suppliers for allegedly conspiring to inflate prices. That comes on the back of a large antitrust claim agains the pork industry, alleging price collusion since 2009. All of this has a major impact not just on the food processing and packaging industries, but on the restaurant industry as well - given that a full 1/3 of all restaurant costs are related to food inputs. With slim margins and a true David v. Goliath dynamic, the restaurant industry is ripe for litigation funding. As reported in Modern Restaurant Magazine, the restaurant industry is one where tight margins abound. Any excess costs must be passed onto the consumer, which then impacts sales and revenue. So when large food manufacturers allegedly conspire to inflate prices, restaurants feel the heat more than anybody. Since many restaurants don't have the capital to pursue legal claims, it can be difficult to assert their rights. Additionally, many restaurants want to continue ongoing relationships with their suppliers, hence they are loathe to sue - especially when they don't necessarily have the capital to back up a long, arduous legal claim. With access-to-justice such an issue in the restaurant industry, it makes sense for litigation funders to fill the gap. Any industry with limited (or non-existent) legal budgets can benefit from litigation funding, and the restaurant industry is in exactly that position. Asserting one's rights against suppliers and vendor is a tough call for any business, especially one as precariously positioned as a restaurant. Partnering with funders empowers these businesses by providing them the leverage they need to take on multi-billion dollar corporations who allegedly conspired to increase their costs.