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Announcements Commercial

Omni Bridgeway achieves significant growth in key drivers

Omni Bridgeway Limited (ASX: OBL) (Omni Bridgeway, OBL, Group) has today released its results for the 12 months ended 30 June 2023 (FY23, Year). Managing Director and Chief Executive Officer, Andrew Saker, said “I am pleased to announce notable achievements during FY23 and report on a strong finish to the year, underpinned by gathering market momentum and the effectiveness of our diversified funds management strategy.” The Group reported a substantial ~200% turnaround in the second half compared to the first half and is backed by a strong capital position of over $360 million in cash and receivables,” added Mr Saker. Key highlights of FY23:
  • Increased potential future income by achieving a record level of commitments amounting to $544.2m up 17%.
  • The estimated portfolio value (EPV) grew by 12% to reach $30.5 billion, after completions, removal of impaired investments now completed, and disposals, and achieved a 34% CAGR (four years to 30 June 2023).
  • Grew implied embedded value (IEV) by 9% to $3.9 billion, with $1.0 billion provisionally attributable to OBL, excluding estimated management fees and potential performance fees.
  • Delivered a strong second half result with 203% NPAT turnaround of $61.1m from the first half, reflecting improved income, lower expenses and signalling momentum heading into FY24.
  • We have delivered total gross income and revenue to a record level of $330.0 million, up 51% on last year, derived from diversified sources comprising both completions of investments and secondary market sales. 
  • Increased litigation proceeds by 30% to $283.4m comprising $235.7m investment completions and $47.7m cash proceeds from the sale of a participation in Fund 1 assets.
  • Achieved 9% cost savings in 2H23 reflecting non-recurring items and initial savings from expense optimisation with a continued focus on cost efficiencies into FY24.
  • Upsizing of Funds 4 and 5 are progressing well with ~US$400m to US$600m first close from existing investors expected in 1H24, followed by a potential second close with new investors.
  • Build out of platform is now substantially complete readying our business for anticipated future growth.
  • Achieved geographic expansion in the northern hemisphere with new locations in the United States, France and Italy, maintaining both our competitive advantage and industry leadership.
  • Made executive leadership appointments including a Global Chief Financial Officer, a Co-Chief Investment Officer of EMEA and a Global Head of People and Culture.
The remainder of the FY23 Results Summary can be accessed here.
Announcements Consumer

Legal-Bay Pre-Settlement Funding Reports Johnson & Johnson’s Latest Attempt at Bankruptcy has Failed

Legal-Bay, The Pre Settlement Funding Company, announced today that Johnson & Johnson's efforts to put a hold on the numerous lawsuits they are facing by filing bankruptcy have failed. Judge Kaplan ruled that the filing did not meet the requirements to qualify as a "good-faith" bankruptcy attempt, and was merely a way to seek protections against the billions of dollars the pharmaceutical giant will be expected to pay out in damages. The Johnson & Johnson cases are on track to rank among the largest mass tort settlements in U.S. history. Over 60,000 lawsuits have been brought by plaintiffs who allege that their talc-based baby powder is directly responsible for causing their ovarian cancer and/or mesothelioma, and point out that the company has long been aware of the health risks associated with their product. Several studies dating back to the 1970s concluded that talc particles increase a person's chances of developing serious medical issues, and evidence suggests that J&J has been intentionally concealing the results for decades. However, despite their $8.9 billion settlement offer, J&J continues to stand by the safety of their product.  Chris Janish, CEO of Legal-Bay, commented, "The Judge's ruling in respect to the bankruptcy strategy by J&J seems to be fair for the plaintiffs. However, now the parties need to come back to the drawing board to work on a realistic settlement framework. With the quantity of claims and seriousness of the injuries there is likely to be a large gap—which will only drag things well into 2024. We are hopeful that at some point, both sides will come to a reasonable resolution so the people suffering can receive some funds in near future."  If you require an immediate cash advance lawsuit loan from your anticipated Johnson & Johnson talc baby powder lawsuit settlement, please visit the company's website HERE or call 877.571.0405 Legal-Bay's sources close to the litigation believe that the parties will try to reach a global agreement by year's end. However, payments could be delayed for another two years due to the sheer number of claims to process. Legal-Bay is one of the few legal funding companies who are providing some financial relief to victims and their families with risk-free, non-recourse cash advance settlement loans.
Commercial Fundraising

LitFin Announces Establishment of New Fund

In a post on LinkedIn, Ondřej Tyleček, partner at LitFin, announced that the European funder has established a new fund: LitFin SICAV a.s. Tyleček explained that the launch of the new fund was the result of many months of work alongside managing partner Maros Kravec, with the aim of establishing a fund that will bring “a wider range of qualified investors the opportunity to participate in as well as benefit from the litigation finance asset class”.  Tyleček further explained that LitFin worked with Wood & Company, an investment bank also based in Prague, to help LitFin pursue its strategy for continued growth and further success both in the CEE region and across Europe. He also thanked Miroslav Nosal, Dominik Fries and David Kubon of KLB Legal, for their “guidance through the process of fund establishment.” Those interested in working with LitFin can contact the funder at: info@litfin.cz
Commercial Legal Innovation

Insights on Litigation Funding in Australia from Hartwell Funds

There is no doubt that the litigation funding industry is largely dominated by established global funders whose years of experience and vast reserves of capital allow them to take on the largest and highest value cases. However, it is always important to understand the perspectives of new and growing funders who are finding solid returns for their investors in local or regional markets. On a new episode of Talk Ya Book from Ticker News, John Poynton and Aaron McDonald of Hartwell Funds discuss the intricacies of litigation funding in Australia, explaining their company’s approach as one of the emerging funders in the market. Discussing Hartwell’s investment strategy, McDonald reinforced the value of being prepared for all outcomes, explaining that “97 per cent of the time cases are resolved by consensus, and 3 per cent of the time cases go to trial, so we’re certainly targeting the 97 per cent not the 3 per cent, but you need to make the investment as if you are one of the 3 per cent.” Discussing the impact of litigation funding on cases, Poynton highlighted how “it’s interesting to see how quickly things move to settlement because of the existence of the funder”, as defendants swiftly realise they can’t bet on a plaintiff lacking the funds to see the case through to completion. McDonald further emphasised this “psychological benefit” of funder involvement, stating that defendants understand that “there’s no way that the case is going to capitulate, it’s either going to go to trial or it’s going to settle.” Explaining how the funder pitches opportunities to investors, McDonald acknowledged that there was an aspect of litigation funding that is speculative, but if “you’re measuring the risk and the prospects of the case carefully, getting independent advice about it, you can invest your money wisely in this sector and do well.” He also discussed the key aspects that Hartwell looks for in prospective cases, highlighting that the cases they have been most confident in are those where “the lawyers have come to us and said, ‘here’s a written opinion from a Silk who says that the case is viable’, that really underwrites the investment.” However, both Poynton and McDonald acknowledge that there is a lack of visibility and transparency for third-party funding in cases, and that defendants rarely know when litigation funders are involved in a case. McDonald notes that this is not always true as some courts require lawyers to disclose the presence of third-party funding, and that “those obligations of disclosure are becoming far greater.”
Commercial Deals

CASL Funds Class Action Against Qantas Over Covid Travel Credits

As many industry leaders and commentators have predicted, we are increasingly seeing new litigation being brought to address institutional or corporate wrongdoing during the Covid-19 pandemic. In addition to the recent class actions brought against UK universities for their pandemic policies, this week, a new lawsuit was brought against a major airline for alleged anti-consumer behavior during the pandemic. An article in The Guardian summarizes the recently announced class action that is being brought against Qantas over its use of travel credits to refund customers for cancelled flights during the pandemic. The class action, which is being brought by Echo Law and funded by CASL, alleges that the airline “breached its contracts with customers by failing to provide cash refunds for cancelled flights” and “engaged in misleading or deceptive conduct in contravention of the Australian Consumer Law”.  Andrew Paull, partner at Echo Law, stated that the travel credits policy allowed Qantas to “take advantage of its own customers and effectively treat them as providers of over $1 billion in interest-free loans”. Paull also highlighted that since the pandemic, customers have been pressured to ‘use or lose’ their travel credits, and as a result, have unjustifiably ended up spending more money than they did on their original flight bookings.  In response to the class action, Qantas has released a statement rejecting the allegations and defending its travel credits policy. The airline argues that the credits policy has already delivered “well in excess of $1bn in refunds”, and in an effort to give customers more flexibility it has “extended the expiry dates three times.”  On its website, Echo Law sets out the recovery aims of the class action: “In addition to seeking refunds of any outstanding amounts due to Qantas customers, and compensation representing the difference between the ‘value’ of the credits issued to customers as compared to a cash refund, the claim seeks to recover an award for interest and for consequential losses - for example, compensation for ‘loss of use of money’, which recognizes the impact on customers who were deprived of a significant sum of money for a lengthy period of time.”
Commercial Deals

Opportunities and Challenges for ESG Litigation Financing

It has become increasingly common to hear discussions around the utility of litigation financing for ESG litigation, with funders keen to take advantage of new opportunities whilst also positioning themselves as impact investors with a positive agenda. However, it is important to note that whilst ESG and climate-related litigation is on the rise, there are as many challenges as opportunities for those looking to finance these lawsuits. In a guest article for private banking magazine, Patrick Rode, senior legal counsel at Deminor, discusses the opportunities and challenges arising from the use of litigation financing for climate and ESG litigation. Rode highlights that funders are seeing increasing demand from consumer and environmental protection groups, as well as activist investors, who are keen to engage in climate-focused litigation, but are reliant on third-party funders for the capital to bring these lawsuits. Rode highlights that ESG litigation has developed over the last decade, with the target of these lawsuits expanding from a focus on state actors to now including companies who are failing to meet their ESG commitments or regulatory standards. However, Rode notes that broader climate lawsuits often don’t make sense for litigation funders as the current legal system, in countries like Germany, has not favoured plaintiffs, and therefore the chance of success and a solid financial return for investors is often low. Rode explains that financing can make sense in situations where the plaintiff has either suffered actual damage or in cases where compensation can be easily calculated, particularly in cases where the plaintiff is in a dispute with a larger and better resourced opponent. He also highlights that the prospects for ESG litigation may improve over time, given that many countries are seeing legislative proposals to restrict greenwashing and to enhance environmental organizations’ avenues to bring lawsuits.
Commercial People Moves

LCM Announces Appointment of Niall Hanna as Investment Manager

In a post on LinkedIn, Litigation Capital Management (LCM) announced the appointment of Niall Hanna, who has joined the funder’s Singapore office as an Investment Manager.  Hanna brings a wealth of experience to LCM, having joined from Walkers in the Cayman Islands, where he served as a Partner specialising in insolvency litigation and dispute resolution. LCM stated that Hanna’s career has given him “a lot of exposure to situations where litigation financing has made, or would make, the difference between unlocking value for stakeholders and abandoning valuable assets.” In his own LinkedIn post announcing the move, Hanna stated: “After fifteen great years as an Insolvency & Dispute Resolution attorney for Eversheds Sutherland and Walkers, where I was privileged to work alongside brilliant people every day, I am pleased to be using my knowledge and experience for new challenges and I am excited to be part of an impressive team working in a growing space. I am looking forward to meeting new people in the APAC region and to working alongside former clients, colleagues and counterparts.”
Announcements Consumer

Legal-Bay Pre Settlement Funding Company Reports Increase in Lawsuit Funding Requests During Back to School Season

Legal-Bay, the Pre-Settlement Funding Company, announced an uptick in applications for settlement funding now that back-to-school season has begun. Now that summer is over and kids are heading back to school, many parents of college-aged children are faced with the added costs of tuition payments, textbooks, and travel expenses to-and-from campus, not to mention meals and housing once they get there. Even parents of younger kids are dealing with extra expenses: New clothes, backpacks, school supplies, plus the rising costs of extracurricular activities. And parents of kids pre-K and under? Yikes. Daycare rates are out of control. Even before-care or after-care prices for elementary school-aged children are enough to put a dent in anyone's pocketbook. Thankfully, loans on lawsuit settlements are an option for people who need cash now. Legal-Bay understands that money is tight heading into this time of year, and encourages people to investigate what loans for settlements can do. They've helped plaintiffs in active lawsuits across the country with their settlement loan needs, from California to Florida and back again. Whether your kids need money for a box of crayons in their kindergarten classroom or textbooks for their university on the other side of the country, lawsuit loan funds can help. Chris Janish, CEO of Legal-Bay, says, "Although it's still summer for those in the northeast, warmer states in the south like Arizona, Louisiana, Georgia, and Texas are already heading back to school. Families need money for tuition and move-in costs, plus other items like back to school clothes and sports gear. Accessing funds from a pending lawsuit is always an option, and a main reason why applications for funding actually start to pick up in August for us."
Commercial Deals

Woodsford Funds Class Action Against IG Markets Over CFD Products

Class actions remain one of the most powerful tools for individuals to seek legal redress against major corporations, especially when it comes to the world of retail investors who are engaging in a market that is significantly imbalanced against them. In another example of this trend, we have seen a second funded class action brought against IG Markets for its sale of derivative products to Australian retail investors. In a recent post, Woodsford announced that it is funding a class action against IG Markets Limited and IG Australia Pty Ltd (IG), with the lawsuit focused on allegations that IG misled retail investors in its sale of contracts for difference (CFDs). The class action, which was filed in the Federal Court of Australia on Monday, focuses on IG’s marketing and offering of these derivative products between 4 May 2017 and 11 August 2023. This is not the first class action that has publicly announced support from a third-party funder, with LFJ reporting in May that Omni Bridgeway was funding a similar action brought by Piper Alderman against IG Markets over the sale and marketing of CFDs. Alex Hickson, senior investment officer at Woodsford, stated that the funder is “committed to backing this action against IG on behalf of those people who have suffered loss trading these risky and complex products.” He also emphasised that the Australian Securities & Investments Commission (ASIC) has already analysed these derivative products and “has recognised the harm they can cause retail investors.” With funding from Woodsford, the class action’s applicant is being represented by Australian law firm, William Roberts Lawyers. Ding Pan, principal at William Roberts stated that the firm is “firmly committed to recovering compensation for retail investors” and emphasised that IG had sold products which “are highly risky and involve significant and non-transparent fees.”