Reporting by Bloomberg Law covers a hearing conducted by the House Judiciary Committee last week, which featured a discussion on the role of third-party litigation funding in US lawsuits. The committee hearing explored several issues raised around third-party funding, including the desire for increased transparency and disclosure of the presence of outside funding, and the alleged national security implications of the use of litigation finance by foreign businesses or state governments.

Darrel Issa, a representative from California, argued that there was a consensus “that in fact more transparency at a base level needs to be there”, and stated that he would begin drafting legislation to address the issue of disclosure in the following days. Bob Goodlatte, the former representative from Virginia, spoke as one of the witnesses at the hearing and focused on the issue of disclosure for foreign entities, highlighting previous reporting from Bloomberg about third-party funding activities undertaken by Russian and Chinese entities.

Taking a more moderate stance on the level of disclosure required, Victoria Sahani, a law professor at Boston University, suggested that the disclosure of individual funding agreements was not necessary as long as the identity of the funder is disclosed. Explaining her position on the issue, Sahana said: “We should be cautious not to shut down this new industry or reduce opportunities for this industry to improve the administration of justice out of fear”.

Donald Kochan, law professor at George Mason University, argued that there is evidence that when disclosure rules are implemented, it does dissuade certain third parties from engaging as third-party funders. Citing the example of Delaware, where Judge Connolly’s 2022 standing order on disclosure was introduced, Kochan stated that a wider implementation of these measures will “deter a lot of behavior because people just don’t want the sunshine on this.”

As LFJ reported earlier this month, the ongoing saga of the control of antitrust lawsuits between Sysco and Burford Capital saw a new development, when a Minnesota court denied the parties request for a substitution of plaintiff. Now, a court in Illinois has handed another blow to Burford as it has denied the funder’s objections to the enforcement of a settlement between Sysco and poultry processing company Pilgrim’s Pride.

An article from Reuters provides an overview of the ruling from Judge Thomas M. Durkin in the United States District Court for the Northern District of Illinois, which granted Pilgrim’s Pride motion to enforce the settlement with Sysco. The enforcement of the settlement in the antitrust lawsuit had been opposed by Burford Capital’s subsidiary Carina Ventures, arguing that a written agreement was necessary and Pilgrim had not “performed any of its obligations under the supposed settlement. 

In his ruling, Judge Durkin found that “neither argument is sufficient to undermine the objective evidence of agreement that is in the record”, citing emails between the parties from August to December 2022 which thereby provided “sufficient objective evidence of an agreement to enforce it.” With regards to Carina’s objection that this court did not have the jurisdiction to enforce the settlements in the claims taking place in Minnesota, stating that “it cannot be that there is no court with jurisdiction to enforce the global settlement.” 

Judge Durkin expanded on this issue of jurisdictions by saying: “This Court exercising jurisdiction to enforce settlement of actions pending in Minnesota will not interfere with the Minnesota proceedings between Pilgrim’s and Carina/Sysco – it will end them.”

Reuters’ article includes a quote from a Burford spokesperson which emphasised the company’s concern “that the court has today opted to enforce a supposed agreement that the parties clearly never viewed as binding.”The full ruling from Judge Durkin can be read here.

The founder of a major legal finance firm has been voted Most Influential CEO 2024 by a leading magazine.

Craig Cornick, CEO of Manchester- based IQuote Limited, was given the accolade by CEO Monthly for his contribution to legal services in the North-West.

Now in its third year, the awards celebrate the extraordinary achievements of the world's most influential CEOs; whose strategic acumen, transformative leadership, and unwavering commitment are recognised.

The awards are judged purely on merit with all winners assessed against multiple criteria, including company performance over a given period of time, experience within the industry, sector or region, previous accolades won, outstanding client testimonials, feedback or recommendations.

Addressing the win, Craig said: “Receiving the Most Influential CEO award is an incredible honour.

“It reflects the heart and soul that every member of IQuote invests in our shared vision.

“This recognition isn't just about leadership, it's about the relationships we've built, the challenges we've overcome, and the shared triumphs that define our journey.”

Since the beginning of his entrepreneurial career, Craig has remained a respected stalwart in the industry as he continues to revolutionise legal finance.

Recently, in a new commitment to encourage entrepreneurial spirit, he has also become a mentor to several young business owners in Manchester.

His decision to give back is rooted in his commitment to nurturing talent and contributing to the growth of Manchester's business community.

Founded in 2016, IQuote Limited specialises in legal asset and opex capital loans, with a primary focus on legal asset investing.

The firm, based in Cardinal House, Manchester, is constantly pushing for inventive solutions and prepared to offer investments to startups in the legal, technology and customer service sectors.

CEO Monthly is part of AI Global Media, an internationally focused B2B digital publishing group founded in 2010.

Craig’s recent win further shows IQuote’s commitment to drive innovation within the legal sector.

He added: “I am immensely proud of the IQuote team and their passion for making a lasting impact.

“Our influence is not just measured in awards but in the positive change we bring to the world and offering better access to justice for thousands of people.

“It serves as a powerful reminder that true influence is built on a foundation of collaboration and a commitment to shaping a better future.

“Thank you to my incredible team for making this achievement possible and once again thank you to CEO Monthly for their recognition. It is truly humbling."

A spokesperson from CEO Monthly Magazine, said: “Craig has demonstrated exceptional leadership and innovation in the legal services sector.

“His consistent focus on leveraging technology to disrupt traditional industries, particularly in litigation funding, highlights his commitment to enhancing access to justice for society's most vulnerable.

“Furthermore, Craig's philanthropic efforts distinguish him as a socially responsible leader. As the leading fundraiser for a Manchester charity event, he rallied thousands of pounds for the CEO Sleepout initiative, raising over £10,000 to combat homelessness.

“In recognition of his transformative leadership, entrepreneurial achievements, and commitment to social responsibility, Craig Cornick is undoubtedly a deserving candidate for this year’s awards.”

Whilst most coverage of third-party legal funding focuses on high profile disputes, from large-scale class actions to complex international arbitration proceedings, the services provided by litigation funders are equally highly valued by those wealthy individuals who may find themselves embroiled in costly legal cases.

The wealth management and luxury lifestyle magazine Spear’s has released its ranking of the best litigation funding providers for high-net-worth (HNW) individuals in the UK, covering those providers who support disputes ranging from divorces to large corporate cases. Spear’s Head of Research, Ian Douglas highlighted that these litigation funders offer HNW couples “the vital financial support they need to access the legal system on an equal footing”, and “can empower clients to secure a fair settlement in an efficient and cost-effective manner.”

The complete list of Spear’s litigation funding index is as follows:

• Katie Alexiou, Level
• Christopher Bogart, Burford Capital
• John Byrne, Therium
• Alex Cooke, Schneider Financial Solutions
• Susan Dunn, Harbour Litigation Funding
• Steven Friel, Woodsford
• Camilla Funari-Sherman, Rhea Family Finance
• Alex Hulbert, Schneider Financial Solutions
• Mark King, Harbour Litigation Funding
• Ellora MacPherson, Harbour Litigation Funding
• Neil Purslow, Therium
• George Williamson, Level

Among these ranked individuals, Spear’s highlighted the following four providers as ‘names to know’: Katie Alexiou (Level), Ellora MacPherson (Harbour), Camilla Funari-Sherman (Rhea Family Finance), and Alex Cooke (Schneider).

Spear’s Research Unit selects and ranks the providers in its index through a combination of detailed market research by interviewing industry participants, soliciting information from candidates for ranking, and employing a proprietary weighted scoring system to evaluate the providers’ practices.

An announcement from Provenio Litigation revealed that the boutique litigation firm has reached £1 billion in litigation instructions only five years after it launched in 2019. The firm, which was founded by a team of senior litigation lawyers from DLA Piper, has grown the business to expand its services across different areas of litigation and into new jurisdictions, backed by partnerships with third-party funders.

Mark Goodwin, founder and managing partner of Provenio, said that despite the difficulties faced by founding the firm shortly before the Covid pandemic, the ability “to attract business litigation instructions with a combined value of £1 billion shows how far we have come over the last five years.” Goodwin noted that this growth means the firm is now involved in cases across Europe, North America, South America, and the Middle East. 

Explaining the success of Provenio’s growth strategy, Goodwin said that this has been achieved “by attracting high value instructions, breaking into new areas of work and growing the business with a number of our high value cases being supported by the leading litigation funders.” The firm has also broadened its services with the launch earlier this year of Optimise, Provenio’s own insolvency litigation financing solution, which offers support to insolvency practitioners pursuing litigation against directors and third parties.

As LFJ reported in October of last year, Milberg London had previously announced that it had secured litigation funding from Bench Walk Advisors to bring a claim against Valve Corporation, one of the world’s largest gaming companies.

An article from CDR covers the news that this claim has now been formally brought against Steam, the games marketplace owned by Valve, over allegations that it breached UK competition law resulting in consumers being overcharged for purchases from the video game distributor. The opt-out claim was filed last week in the Competition Appeal Tribunal by Vicki Shotbolt, founder of the online safety advocacy group Parent Zone, and is being brought on behalf of up to 14 million UK consumers. The total value of the claim is estimated to reach £656 million, with the affected consumers potentially entitled to compensation of £22 to £44 if the claim is successful.

At the heart of the claim being brought against Steam, is the allegation that its use of a ‘price parity’ condition on game developers results in the end-consumer being charged an excessive price on games. This is because price parity prevents developers from selling the title at a lower price through other distributors, which combined with Steam’s 30% commission on all sales means that consumers are forced to pay an inflated price.

Shotbolt says that the claim aims to hold Valve “to account for breaking the law”, arguing that the company must be stopped from “abusing its dominant position to force publishers to sign up to illegal trading terms and tying consumers in and charging excessive prices.” 

Milberg London are acting for the proposed class, with representation by Robert Palmer KC, Julian Gregory and Will Perry of Monckton Chambers. As aforementioned, third-party funding has been secured from Bench Walk Advisors.

Natasha Pearman, partner at Milberg London, describes Valve’s monopolistic behaviour as part of its “stranglehold on the PC gaming market”, and that the Steam platform “has essentially taken away normal competition by introducing this price parity provision, so there’s no ability for real competition to thrive or emerge on alternative distribution channels.” For more information about the opt-out claim, visit the Steam You Owe Us website.

In a post on LinkedIn, JBSL announced the appointment of Jonathan Weitz as Managing Director and Head of JBSL Advisory Services. 

Weitz joins the JBSL team having most recently served for the past three years as a Vice President at Evercore’s financial services advisory group. Weitz’ brings nearly a decade of experience in the financial services industry, including over six years at Keefe, Bruyette and Woods (KBW), where he held the position of Investment Banking Vice President.

In the announcement, JBSL stated that Weitz’s experience and expertise “will be invaluable to our law firm clients, corporate clients and our coinvestors, in all aspects of balance sheet and legal asset maximization.” His role as head of the company’s advisory services will see Weitz lead JBSL’s support for their clients in “identification of dormant legal assets, capital structuring, strategic acquisition/sales of dockets and law firms, and succession planning.”