Court House Capital is delighted to welcome Heather Collins as Chief Investment Officer and member of the Investment Committee, responsible for assessing and overseeing investment opportunities for the business across Australia and New Zealand.
Heather is a veteran commercial litigator with significant experience in the litigation funding sector, commercial legal practice and in-house corporate counsel roles spanning insolvency, banking and finance, property, construction, Corporations law, trade practices and employment law. Heather is highly regarded leader in the sector and is a former President of the Women’s Insolvency Network Association NSW branch (WINA), a Professional Member of the Australian Restructuring & Insolvency Association (ARITA) and the Turnaround Management Association Australia (TMA), and is recognised in Chambers and Partners Litigation Support (2024) and Lawdragon Global 100 Leaders in Litigation Finance (2021-2024). In her newly created role, Heather will work alongside the wider team and Chief Executive Officer Michelle Silvers who leads Court House Capital’s overall business strategy and operations.
“We are seeing increasing demand for funding across Australia and New Zealand, and I am absolutely delighted to welcome Heather Collins as Chief Investment Officer in response to this growth. Heather brings a wealth of experience in funding and commercial litigation, and as Chief Investment Officer she will work closely with me to expand our business and oversee our investment portfolio.” Michelle Silvers, Chief Executive Officer, Court House Capital
“I’m thrilled to join the wonderful team at Court House Capital, in the newly created role of Chief Investment Officer. I have tremendous respect for Michelle and the Court House Capital team and look forward to bringing my extensive legal and funding experience to support our funded claimants and the stellar law firms we work with.” Heather Collins, Chief Investment Officer, Court House Capital
ABOUT COURT HOUSE CAPITAL
Court House Capital is a leading litigation funder focused on cases in Australia and New Zealand. Led by industry founders, with Australian based capital, the team is renowned for expertise, agility and collaboration.courthousecapital.com.au
As LFJ reported in July of last year, a claim funded by Litigation Capital Management (LCM) and brought against the Tanzanian Government had achieved a landmark victory, after Indiana Resources was awarded $109 million in damages. Nearly a year later, the parties have come to an agreement which will see the claimant receive 82.5% of the original award.
Reporting by the Cairns Post covers the outcome of an annulment hearing conducted by the International Centre for Settlement of Investment Disputes (ICSID), with a settlement that will see the Tanzanian Government pay Indiana Resources $90 million over its unlawful expropriation of Ntaka Hill base metals project. Whilst the claimant has already received one payment of $35 million, it has now been agreed that Tazania will pay a further $25 million by October 25, 2024 and $30 million before March 30, 2025.
Commenting on the outcome of the ICSID hearing, Indiana Resources’ executive chairman, Bronwyn Barnes said that “this settlement clearly demonstrates Tanzania’s commitment to work with international mining investors to resolve the historical dispute between the parties.” Barnes went on to add that he is confident “Tanzania will fully abide by the terms of the settlement and that the remaining instalment payments will be made by Tanzania in compliance with the agreed terms.”
The settlement contains provisions to ensure that if Tanzania does not fulfil these agreed payments, then proceedings can be recommenced before ICSID, which would include the enforcement of the award and seizure of Tanzanian assets to do so. Whilst the initial $35 million payment has been set aside to repay LCM’s funding and legal costs, identified to be approximately $23 million, the remainder of this payment has been retained to cover any of the proceedings that would ensue under such a breach of the settlement agreement.
The original July 2023 decision by an ICSID ad hoc arbitral panel, found that Tanzania had breached the UK-Tanzania Bilateral Investment Treaty when it cancelled a mining retention license and seized the Ntaka Hill Project which had been held by a trio of three companies under majority ownership of Indiana Resources. As the manager of the joint venture, Indiana Resources had led the claim of arbitration against the Tanzanian government since 2019 and according to an announcement in August 2020, had secured $4.65 in funding from Litigation Capital Management.
Investor state treaty disputes have often represented a valuable investment opportunity for litigation funders, such as the claim brought by Rockhopper Exploration against the Italian government that LFJ reported on in 2022. However, a report by an environmental group argues that the high volume of these claims will result in states taking a more cautious approach when it comes to combatting climate change.
An article on BNN Bloomberg highlights a new report from climate think tank E3G which examines the use of Investor-State Dispute Settlement (ISDS) claims against national governments, and argues that the fossil fuel industry is claiming billions of dollars in damages whilst having a “chilling effect” on climate action. Using data from the International Institute for Environment and Development, the report found that 20% of the 1,700 public cases have involved companies in the fossil fuel industry, with at least $80 billion recovered in damages.
The Rockhopper Exploration claim is highlighted as an example of this trend, with the firm being awarded €190 million ($206 million) in damages from the Italian government, over the state’s denial of a production concession from its ban on oil and gas exploration. The Rockhopper claim was financed by Harbour Litigation Funding, and whilst the Italian government is attempting to have the award annulled, Rockhopper’s CEO has stated that they expect the “the annulment request will be rejected in due course.”
Lisa Sachs, director of the Columbia Center on Sustainable Investment, spoke with Bloomberg and said that as long as funders are willing to back the companies making these cases, “states that take necessary climate-related measures may be exposed to increasing risk of abuse of ISDS claims.” Tai-Heng Cheng, a partner at Sidley Austin, argues that investors and states may eventually find a pragmatic common ground on these treaty disputes, “but until we get there, there is a period of instability that we’re going through.”
Rebecca Berrebi is the CEO and Founder of Avenue 33, LLC, a full service, litigation finance consultancy that provides brokerage, strategic advisory and recruiting services. She handles all types of matters within the litigation finance industry from single case financings to law firm portfolios to insured structured credit matters. Rebecca has worked in the litigation finance industry since 2016, and her background as a private money transactional lawyer and funder allows her to serve clients with both legal acumen and keen business insight.
Previously, she was the Head of Corporate Affairs at a leading litigation finance fund manager where she oversaw investments and served on many boards and committees, including of Eco Oro Minerals Corp. (CSE: EOM). Rebecca graduated from Duke University, after which she worked in the political affairs and public relations industry. She later obtained her law degree from Benjamin N. Cardozo School of Law, and practiced as a private equity M&A lawyer at Kirkland & Ellis LLP and at a global private equity fund.
Company Name and Description: Avenue 33, LLC serves litigants, funders, law firms and investors in addressing and closing the litigation finance knowledge and communications gaps in order to facilitate a more seamless, efficient and successful financing process – from outset to outcome.
Often even sophisticated parties come to a “dispute finance” matter with varying backgrounds, underlying understandings and assumptions. With information equality, alignment of interests, harmonization of expectations and clarity of process, the opportunities for maximizing positive outcomes and minimizing contention substantially increases for all stakeholders. Avenue 33 can provide guidance, strategic advice and support leading to efficient value optimization.
Area of Focus: Advising and brokering all types of litigation finance related matters
Member Quote: In this opaque market, visibility into trends and appetites of the players saves lawyers, clients, funds and all stakeholders time and money. Experienced, high-quality brokers create value for individual deals as well as add credibility to the litigation finance industry generally.
As LFJ reported in May, the impact of the decision by the US Court of Appeals for the Fifth Circuit to overturn a $1.6 billion judgement against IBM had led to insurers reconsidering their exposure around litigation insurance deals. However, new reporting suggests that one of the ways insurers are adapting to this environment is through a product offering that specifically targets patent infringement matters.
An article in Bloomberg Law examines a growing trend of patent monetization insurance, where insurers are offering new types of policies that will guarantee a portion of the payout that patent holders would receive in their patent infringement lawsuits. CAC Specialty is highlighted as one insurance broker that has already been involved in this type of product, with CAC’s Megan Easley arguing that “this serves as a really good alternative for folks with valuable intellectual property who are looking for lower cost financing”.
As part of this trend, insurers are looking to move away from single-case insurance towards insuring a portfolio of patent infringement cases, reflecting a longstanding movement in the litigation funding space. However, as the article points out, a growth in the number of insurers offering patent monetization insurance could represent a new form of competition for litigation finance providers.
Gaston Kroub, partner at Markman Advisors, commented on this trend and explained that “there’s a wider network of institutional investors that will dabble in litigation funding if there’s insurance involved because it becomes less binary.” Whilst Michael Gulliford, managing partner of Soryn IP Capital Management, highlighted that there are certain litigation funders who “an’t do an insured deal because the insured cost of capital is much lower than what they need to return to their investors.”
Omni Bridgeway Limited (ASX: OBL) (Omni Bridgeway, OBL, Group) announces the key investment performance metrics for the three months ended 30 June 2024 (4Q24, Quarter) and for the 2024 financial year (FY24).
Summary
Investment income of A$391 million in FY24; A$65million provisionally attributable to OBL, excluding management and performance fees.
76 full and partial completions and one secondary market transaction in FY24, delivered an overall multiple on invested capital (MOIC) of 2.7x.
A single Funds 2&3 investment had a partial completion resulting in A$43.7 million in gross income, with a MOIC of 8.6x.
The 34 full completions during 2H24 had a combined fair value conversion ratio of 118%, providing a first validation of the fair value of the overall portfolio.
A$631million in new fair value added from A$484million of new commitments in FY24.
Pricing at materially improved levels, up 28% for FY24 compared to FY23.
Strong pipeline going into FY25, with agreed term sheets outstanding for an estimated A$148million in new commitments.
OBL cash and receivables of A$123million at 30 June 2024.
A$0.8 billion of fair value in potential completions over the next 12 months.
Full transition from EPV to fair value has been completed.
Good progress on cost management and strategic initiatives.
The full investment portfolio report can be read here.
DecoverAI, a pioneering legal technology company, is excited to announce that it has raised $2 million in seed funding, led by Leo Capital, with participation from other prominent investors. This funding marks a significant milestone in DecoverAI's mission to transform the legal industry through cutting-edge AI solutions.
Introducing DecoverAI
At DecoverAI, we harness the power of AI to save legal professionals time and money, addressing systemic flaws in both civil and criminal litigation that often result in widespread injustice. Our goal is to build a comprehensive "Legal Brain" - an Intelligent AI system that encompasses the capabilities needed for real world legal workflows, including discovering evidence, combining that with research and even generating different strategies for narratives to assist legal professionals. This includes eDiscovery, legal research, and case strategy development, providing a seamless and integrated experience. Under the technical leadership of Janar Ramalingam, our CTO, DecoverAI's flagship technology, Generative Defense, is set to elevate the practice of law by automating complex legal analysis and enabling legal professionals to craft compelling defense strategies with unprecedented efficiency.
A New Era for Legal Research and eDiscovery
One of DecoverAI's standout features is its ability to query several million documents or several terabytes of data simultaneously, providing legal professionals with rapid and comprehensive access to vast amounts of data and analytics. This capability is a game-changer for general counsels and law firms of all sizes, from boutique practices to the largest AmLaw 200 firms, as well as for plaintiffs seeking to leverage advanced technology for their cases. By offering a scalable solution that meets diverse needs, DecoverAI is positioned to become an indispensable tool across the entire legal industry.
Mission and Vision
At DecoverAI, our mission is to empower legal professionals with the tools they need to achieve better outcomes, faster. At DecoverAI, we envision a world where legal teams will be augmented with human-like intelligence served by smart AI-assisted platforms.
Lawyers handling both criminal defense and civil litigation will be able to harness the power of thousands of associates with perfect memory at their fingertips at a fraction of the cost of what it costs today.
Funding Utilization
The $2 million raised will be used to accelerate the development and deployment of our innovative technologies. The funds will be allocated to enhance our AI capabilities, expand product features, grow our teams, and invest in marketing and sales efforts to bring our solutions to a wider audience.
Quotes from Leadership and Investors
"We are incredibly excited about the potential of DecoverAI to revolutionize the legal industry. Our goal is to empower the best attorneys in the fraternity with the immense power and capabilities of large language models, enabling them to significantly uplevel themselves against their competitors," said Ravi Tandon, CEO of DecoverAI. "This funding will allow us to take significant strides towards realizing this vision and making a real difference for legal professionals."
"DecoverAI's Generative Defense is a game-changer for the legal industry. It represents the next generation of legal technology, providing tools that were previously unimaginable. We are thrilled to have the support of our investors as we embark on this journey," added Kevin J. Van Horn, COO & CRO of DecoverAI.
"DecoverAI's proposition is perfectly aligned with Leo Capital's focus on supporting tech-centric global solutions designed for large-scale disruption. As legal disputes increase, the burden on lawyers and judicial systems worldwide has become overwhelming, making it essential to harness the power of AI to transform legal workflows in a highly targeted way. DecoverAI's proprietary 'Generative Defense' is a groundbreaking solution that is poised to be transformative for law firms of all sizes," said Ravi Srivastava, Partner at Leo Capital.
About DecoverAI
Founded in 2024, DecoverAI is a Washington, D.C.-based legal technology company focused on delivering AI-driven solutions to enhance the efficiency and effectiveness of legal professionals. By integrating advanced AI with legal workflows, DecoverAI is setting new standards in the industry and driving the future of legal technology.
About Leo Capital
Leo Capital is a venture capital firm that invests in groundbreaking startups across various sectors, with a focus on technology-driven innovation. Leo Capital is dedicated to supporting visionary entrepreneurs and companies that have the potential to disrupt industries and create lasting impact.
Contact Information:
Kevin J. Van Horn Chief Operating Officer & Chief Revenue Officer DecoverAI Email: info@decoverhq.comFor more information, visit DecoverAI's website.
In a post on LinkedIn, The Association of Litigation Funders of Australia (ALFA) announced that it is welcoming YIMBA as its newest Associate Member. YIMBA becomes the 14th Associate Member of ALFA, following the inclusion of Shine Lawyers earlier this month.
YIMBA provides legal, commercial management and consulting services across a wide range of areas including: infrastructure, construction, transport, mining, energy, resources, renewables, property, environment, planning, Indigenous Business, land access, native title, land claims, cultural heritage, RAPs, ESG and dispute resolution.
YIMBA was founded by Damien Barnes and is a 100% Indigenous owned, managed and controlled firm, based out of Sydney.
In the post, ALFA said it was looking forward to working with the Damien Barnes, and the rest of the team at YIMBA.
More information about YIMBA can be found on its website. More details about ALFA and its members can be found here.
Maz Ghorban, an experienced senior executive with a distinguished 25-year career spanning the legal services, call center, and software industries, has taken the helm as President of Rockpoint Legal Funding, a burgeoning leader in Litigation Funding. With extensive experience in scaling private and public companies, Ghorban is set to drive the company's mission to facilitate optimal case outcomes by providing critical funds and accessible medical treatment to plaintiffs, while delivering operational efficiencies and capital to law firms.
Ghorban's appointment comes at a pivotal time as Rockpoint Legal Funding prepares to launch its new venture, Rockpoint Probate Funding. His seasoned leadership and data-driven decision-making have already made a significant impact on shaping this new initiative. It is important to note that Rockpoint Legal Funding is not a financial, medical, or legal advisor, and individuals should seek appropriate professional advice for such matters.
Recognizing a need similar to litigation funding, probate funding offers substantial benefits for beneficiaries and executors who require access to funds during the often lengthy and complicated probate process. Probate funding can help heirs avoid the prolonged wait for their inheritance and can be utilized to cover expenses such as medical bills, funeral costs, and day-to-day living expenses.
Under Ghorban's leadership, Rockpoint Legal Funding is poised for significant growth and success among its already substantial offerings from pre-settlement and post-settlement funding to plaintiff and litigation funding and medical lien purchases. His strategic vision, combined with his deep industry knowledge and unwavering commitment to excellence, will drive the company's mission forward and enhance its reputation as a leader in the legal funding industry.
Mr. Ghorban jovially states, "To be blessed with the career I have had and the amazing teams I have worked with is something I will always be grateful for, but not until I arrived at Rockpoint did I truly feel at home, surrounded by a supportive team of managing executives, and the most highly reviewed and dedicated sales staff and client reps in the industry."
Before joining Rockpoint, Ghorban served as Executive VP and Business Unit CEO of Alert Communications, a subsidiary of Everservice and the largest legal-only intake call center in the United States. Ghorban's extensive background in supporting plaintiff and defense firms spans every part of the firm lifecycle. His comprehensive understanding of the legal services landscape positions him uniquely to lead Rockpoint Legal Funding and its new probate funding initiative to new heights.
As Rockpoint Legal Funding embarks on this exciting new chapter with the launch of Rockpoint Probate Funding , the company's future looks brighter than ever. With Ghorban at the helm, Rockpoint is well-positioned to continue its legacy of excellence and make a lasting impact on the legal services industry.
For more information about Rockpoint Legal Funding and its new probate funding initiative, please visit the company's website ( https://rockpointlegalfunding.com/ ) or contact Dan Burks-Goodman at 424-502-4645x894 or 381053@email4pr.com
Omni Bridgeway Limited (ASX:OBL) (Omni Bridgeway) announces an in principle, partial completion of a Funds 2&3 investment following a settlement of the related litigation with certain defendants. The settlement is subject to the parties entering into a binding settlement agreement and court approval. The partial completion is expected to generate gross income of $43.71 million in Funds 2&3. Proceedings continue with further investment deployments and proceeds anticipated.
Omni Bridgeway expects to receive payment during the next 4 quarters, resulting in the following metrics (subject to prevailing foreign exchange rates):
Simon Warr heads up the legal Expenses division at AmTrust International. In his current role he focused on expanding the global reach of Adverse Costs, Capital and more general Legal Protection products.
Simon started in legal expenses insurance in 1989 and has worked consistently in a variety of roles within the profession ever since. His roles have consisted primarily of underwriting positions at a coverholder and insurer level but have also included business development and management positions within both the insurance company and Lloyd’s syndicate markets. Prior to joining AmTrust, Simon was at Brit Insurance and before that at Capita Insurance Services, Eastgate Assistance and Hambro Legal Protection for a number of years. Simon was President of Legal Protection International (LPI) for 7 years up until 2024. LPI was the global international legal expenses insurers association which carried out extensive work on market data and lobbying.
Headquarters: Exchequer Court, 33 St Mary Axe, London, EC3A 8AA
Areas of Focus: Legal Expenses Insurance, CPI and JPI
Quote on Litigation Funding: Litigation Funding, used wisely, provides access to justice – simple. In an ideal world we wouldn’t need it, but we don’t live in an ideal world, so it provides an essential part of the armoury needed to right wrongs.
Tom is the Chief Commercial Officer of Sentry Funding. Pivoting his financial advisory business into litigation funding in January 2020 after noticing the lack of technology in the space and seeing the pain litigators had in acquiring funding.
Tom heads up the day to day running of the business and works closely with the tech team providing strategic direction of the Sentry Portal. As well as a background in finance, Tom also has experience in digital marketing, real-estate and is an angel investor.
Company Name and Description: Sentry Funding – Litigation funding marketplace that simplifies the process of arranging litigation funding through market leading technology.
Diverse panel of funders
Deal flow of vetted cases for funders based on a pre-set criteria
Post-funding support via our team of inhouse auditors
Exclusive automated funding options for cases that require less than £500k in funding
Area of Focus: This year we passed the £100m of arranged funding via the Sentry Portal milestone. Our focus now is to provide our services to more funders and litigators to help improve the process of acquiring litigation funding globally.
Member Quote: ‘Access to justice’ feels like an overused expression but sadly the justice system is not a level playing field. Those without means are either at a disadvantage or excluded all together. I’ve always been passionate about litigation fundings ability to support those in need and as an industry we should be proud that our services change lives. It’s easy to forget about the human on the other side of our spreadsheets and financial forecasts, so it’s always a good exercise to remind ourselves of why we do what we do and that we hold an important responsibility to those people.
NorthWall Capital (“NorthWall”), a leading credit investment firm delivering private capital solutions to counterparties in Western Europe, today announces the appointment of Scott Carpenter as Chief Operating Officer.
Scott commenced his role at NorthWall in June and brings with him 35 years of experience in a wide variety of financial management roles globally. Most recently, Scott spent 11 years at Alpha Wave Global, a $19bn AUM global investment company focused on private equity, private credit and public markets. Scott joined the firm at inception as a day one employee and rose to the role of Chief Operating Officer. Prior to that, Scott was Global Head of Operations for eight years at leading alternative credit platform CQS (now Manulife | CQS Investment Management) and previously spent 10 years at Credit Suisse working in a variety of operational management roles in London, New York, Singapore, Sydney, Brisbane and Wellington.
Scott replaces Founding Partner and Chief Operating Officer Ian Lokkerbol, who will retire from the industry at the end of July with the intention to pursue a career in nature conservation. During his time at NorthWall, Ian has supported the growth of the firm from a start-up to a €1.5bn AUM diversified European credit platform with c. 30 employees. Ian will continue to support the management team in an informal advisory capacity.
Fabian Chrobog, Founder and Chief Investment Officer at NorthWall Capital, said: “We are delighted to welcome someone of Scott’s calibre to NorthWall. His significant experience of stewarding private capital and alternative credit firms through periods of growth will be invaluable as we enter the next phase in our development.”
“It is with great sadness that we say farewell to Ian, who has been an integral part of the NorthWall journey since we founded the firm in 2017. I have had the pleasure of working with Ian in a variety of different positions for almost 15 years and will miss him greatly. Ian was the first person to join me at NorthWall and the faith he put in our young venture was a key contributor to our success. Over the last seven years Ian has been instrumental in building a best-in-class infrastructure and in shaping a culture that has helped NorthWall develop a near-perfect team retention track record since inception. On behalf of the entire NorthWall team I wanted to thank Ian for his contributions and wish him the best in his future endeavours.”
Alexander Garnier, Founding Partner and Portfolio Manager at NorthWall Capital, remarked: "We are thrilled to welcome Scott to the NorthWall team. His extensive experience and proven track record in operational leadership and strategic growth will be pivotal as we chart our next phase of growth.”
"Ian’s departure marks the end of an era, and he will be greatly missed. His leadership and dedication have been one of the bedrocks of our success, and I cannot thank him enough. I wish him all the best in his next chapter. We are confident that Scott’s appointment as COO will build on the solid foundation Ian has established, driving NorthWall towards even greater achievements."
Ian Lokkerbol, Founding Partner at NorthWall Capital, commented: “While I am sad to be retiring from the industry and leaving a firm I care so deeply about, I look forward to spending more time focused on nature conservation, a great passion of mine. I also know I am leaving NorthWall in very strong hands and well positioned to continue to grow, a journey I am proud to have been a part of. I wish Fabian, Alex, Scott and the team lots of successes going forward, as I continue to cheer from the sidelines.”
“I am thrilled to be joining NorthWall at such an exciting stage in the company’s growth,” addedScott Carpenter, Chief Operating Officer at NorthWall Capital. “Over the past seven years, Fabian, Alex, Ian and the entire team have established the firm as a leading European credit investment manager and laid a strong platform for future growth. I look forward to supporting the firm in further capitalising on the increasing opportunity for European credit.”
In June, NorthWall announced the final close of its flagship NorthWall European Opportunities Fund II and associated vehicles attracting more than €640m in investor commitments, surpassing its initial €500m target and more than doubling the size of its predecessor vintage.
Having spent more than twenty years as a commercial litigator with international law firms and in house, Andrew brings a wealth of experience to bear in selecting appropriate cases for investment, monitoring invested cases, and collaborating with our clients and their counsel to optimize litigation outcomes.
Company Name and Description: Lex Ferenda Litigation Funding LLC. We specialize in funding single commercial cases starting at $1 million.
Area of Focus: Risk management, underwriting, and managing investments in commercial litigation.
Member Quote: I love my work in litigation funding because it marries three things: legal excellence in underwriting and supporting our investments, entrepreneurship in building a business in a rapidly growing field, and strong relationships with our clients, their counsel, and my colleagues.
As LFJ recently covered, the world of patent litigation funding has yet again ignited a high-profile rift between a global corporation and a litigation funder, with Apple looking to compel Omni Bridgeway to answer its subpoena. This ongoing dispute shows no signs of cooling off as the funder has now filed a stout opposition to Apple’s request for the court to compel compliance with the subpoena, which Omni Bridgeway says “fails on all counts.”
Reporting by Bloomberg Law covers the latest developments in the fight between Apple and Omni Bridgeway over the former’s attempt to subpoena the funder for information around its supposed involvement in a patent infringement case. On Monday, Omni Bridgeway filed its opposition to the Apple’s motion to compel compliance with the subpoena, in which it argued that rather trying to resolve the two parties’ differences over discovery, “Apple has rushed to compel non-party Omni to engage in burdensome discovery efforts based on Apple’s unfounded speculation that Omni “should have” or “likely” engaged in actions Apple deems relevant.”
In a filing that spans over 20 pages, Omni Bridgeway argued that “in the seven months since it issued a subpoena to Omni, Apple has refused to explain the relevance of the discovery it seeks.” The funder accused Apple of “a blatant attempt to arbitrage the courts, avoid addressing the question of relevance before the trial court, and apply the actual facts and binding authority of the underlying litigation.”
The fiery response to Apple’s motion included claims that the company’s attempts were “futile” and that it had “cherry-picked quotes from factually and legally distinct cases” to support its arguments.
Omni Bridgeway’s full opposition to the motion to compel can be read here.
Deminor welcomes Dr. Stephan Klebes to the Hamburg team to expand its leading position in the German litigation funding market
Dr. Stephan Klebes adds experience and expertise in complex commercial disputes, investment recovery cases and antitrust actions to the Deminor team - especially in the fields of arbitration and capital markets law.
Deminor is pleased to announce the appointment of Dr. Stephan Klebes as Senior Legal Counsel. With the arrival of Stephan, a further experienced litigator joins the established team of Dr. Malte Stübinger (General Counsel Germany), Patrick Rode (Senior Legal Counsel) and Tim Willing (Senior Legal Counsel).
Dr. Stübinger commented on Stephan's arrival:
“With Stephan, we are gaining a highly qualified colleague with a broad legal background who will actively support our further growth in Germany and brings the Deminor mindset with him. An excellent addition to our team that emphasises our strong commitment to the German market.”
Stephan Klebes was admitted to the German Bar in 2021 and has broad experience in litigating and advising on cross-border disputes before international arbitral tribunals and state courts, with a particular focus on general commercial disputes and investment recovery cases. Prior to joining Deminor, he was an associate with the specialised litigation law firm Quinn Emmanuel where he represented companies in various types of arbitration proceedings, as well as complex investment recovery claims before state courts.
Erik Bomans, Chief Executive Officer, added:
“I wish to echo my colleagues' sentiments by congratulating Stephan on joining Deminor’s growing Hamburg team. Stephan’s wide-ranging legal expertise is a welcome arrival, and I am confident they will complement General Counsel Dr Malte Stübinger and his fellow Senior Legal Counsels. I look forward to his contribution to Deminor and our clients as we strengthen our position as a Chambers & Partners Band 1 Ranked provider of litigation funding solutions in Germany.”
Stephan Klebes studied law and economics at the University of Mannheim (LL.B., First State Examination) and the University of Cape Town, South Africa (LL.M. in Alternative Dispute Resolution). He then obtained his doctorate at the University of Osnabrück at the chair of Prof Dr Mary-Rose McGuire on an arbitration-related topic and completed his clerkship at the Higher Regional Court of Celle.
On joining Deminor, Stephan comments:
“I am delighted to be working with Deminor to further advance the field of litigation funding in Germany and Europe. The possibility of third-party financing of litigation and arbitration still has a lot of potential. Deminor will certainly be able to further expand its leading role in the German market on the basis of its strongly value-based approach. It is a great pleasure for me to be able to contribute to this mission.”
Dr. Klebes was recognised by Best Lawyers in the category "Ones to Watch 2024" in the field of Arbitration and Mediation.
An article in Business Live covers the announcement from Sheffield-based FinLegal that it has raised £2 million in funding from the Northern Powerhouse Investment Fund II (NPIF II). The legal technology company offers a platform that can be used for the class actions or high volume small claims management, utilising automation and AI to increase efficiency and reduce costs. FinLegal plans to use the new investment to expand its operations and double its workforce.
The funding from NPIF II is a result of the fund’s mission to help small and medium sized businesses in the North of England scale up their operations, with the £660m fund providing loans that range between £25,000 and £2 million, or equity investments of up to £5 million. FinLegal specifically received funds that are managed in part by NPIF II and in part by Mercia Asset Management.
Steven Shinn, founder of FinLegal, provided the following comment on the announcement:
“The claims market is ripe for a platform like ours. Many claims are run on a no-win no-fee basis and increasingly there are fee caps, so operating costs are critical. Our solution reduces costs, automates but also improves client care and makes it possible to manage claims at a scale which might otherwise not be viable. It has already been adopted by the some of the leading claims firms and this investment will enable us to accelerate our international growth.”
Chris Borrett of Mercia Ventures said:
“FinLegal represents a new breed of AI-enabled LegalTech companies. The business has rapidly cornered a niche within the mass volume litigation market and is driving substantial productivity gains for major global law firms. Steven and his team have acquired clients across the UK, Australia and in the USA and set their sights on becoming one of the leading litigation platforms globally.”
Clio, the global leader in legal technology, announced it has raised US $900 million, based on a US $3 billion valuation, in a Series F investment round led by New Enterprise Associates (NEA). The round also includes new partners Goldman Sachs Asset Management, Sixth Street Growth, CapitalG, and Tidemark, who join current investors TCV, JMI Equity, funds and accounts advised by T. Rowe Price Associates, Inc. and by T. Rowe Price Investment Management, Inc., respectively, and OMERS. Marking a new era in its growth journey, Clio will continue to expand its multi-product platform, including further investments in its burgeoning AI portfolio and integrated legal payments. It will also accelerate its rapid market expansion upmarket and internationally, deepening its organic growth to more than 130 countries across the globe.
For 16 years, Clio has been at the forefront of creating innovative, cloud-based solutions tailored to the unique needs of the legal industry. Clio is the operating system for law firms, powering every aspect of the legal process. It simplifies law firm management by centralizing client intake, case management, document management, legal payments, and more. With more than 250+ legal technology software integrations, Clio is also the world’s largest legal technology platform, endorsed by more than 100 law societies and bar associations worldwide, including all 50 state bar associations in the United States.
“This historic raise was heavily oversubscribed, further demonstrating the overwhelming demand and confidence in Clio’s future,” said Jack Newton, CEO and Founder of Clio. “I’m thrilled to embark on this journey with NEA and our group of exceptional investors. The Clio operating system is the undisputed platform of the legal technology sector, engineered to not only meet but anticipate future industry demands. We are pioneering this future for our customers, driven by our mission to transform the legal experience for all. Our commitment to delivering unparalleled value propels every decision we make, and we are inspired by the massive opportunities ahead.”
Tony Florence, Co-CEO at NEA, has joined Clio’s Board of Directors. Mr. Florence commented, “Clio embodies everything NEA looks for in a growth-stage investment: an exceptional, purpose-driven team, market and product leadership, and stellar business physics. Clio is mission critical to law firms, and the company’s best-in-class retention and NPS are testaments to the team’s ability to continuously innovate, deliver immense value, and meet the dynamic needs of the legal sector. With the right foundation in place for continued market expansion and advanced AI capabilities, we believe the best is yet to come. We look forward to applying NEA’s company-building expertise to partner with Jack and the Clio team on their next phase of growth.”
Clio raised its Series E funding in April 2021, a US $110M growth equity round. Since then, Clio has grown its revenue beyond US $200M ARR and has expanded internationally to the APAC region, as well as upmarket to become the leader in mid-market cloud legal practice management software, serving more than 1,000 mid-sized firms in the United States alone. Clio’s all-in-one payments business has skyrocketed since its launch in 2022, now processing billions of dollars annually in legal-specific transactions. Additionally, Clio’s platform has been expanded to include:
Clio Duo proprietary generative AI solution to help lawyers complete routine tasks, and leverage their firm analytics to run a more efficient practice; including audit log functionality for court discovery (available in 2024)
Clio Accounting to manage firm finances in one system of record, designed to help keep law firms compliant
Module for personal injury lawyers with distinct litigation needs, and procedures for medical recordkeeping, this add-on offers rapid settlement estimates for high volume case assessments
Clio Draft intelligent document automation and court form libraries in 50+ jurisdictions
Electronic court filing services available directly in Clio to streamline court interactions
Legal Aid and nonprofit grant billing models, eligibility calculators, and dashboards
Google Local Service Ads directly embedded in the Clio platform to generate, screen, and intake local leads
“While we’re immensely proud of our growth to date, the real opportunity lies ahead of us,” continued Newton. “AI is ushering in an exciting and important new era for legaltech, and Clio is leading that transformation. There’s much to accomplish for the success of our customers so they can thrive in an economy that embraces technology in every interaction.”
Clio has more than 1,100 employees located across hub locations in North America, EMEA, and APAC regions. The company is actively hiring across all areas of its business including product, R&D, sales, marketing, and customer success.
Law firms Osler, Hoskin & Harcourt LLP and Wilson Sonsini Goodrich & Rosati served as legal counsel to Clio. William Blair acted as Clio’s exclusive financial advisor.
A prominent European finance company has announced it will be funding over 25,000 claims in a €1 billion class action against truck manufacturers, who were part of a price-fixing cartel.
Nera Capital, which has offices in Manchester, Dublin and The Netherlands, is focussing exclusively on group redress claims, helping consumers and small to medium sized businesses, fight for justice against antitrust behaviour by corporates.
In 2016, the European Commission found MAN, Volvo/Renault, Daimler, Iveco, and DAF broke European Union antitrust rules by colluding on truck pricing and on passing on the costs of compliance with stricter emission rules from 1997 to 2011.
The Commission imposed a record €2.93 billion fine on the manufacturers, except MAN as it revealed the existence of the cartel. All companies acknowledged their involvement and agreed to settle the case.
Speaking about this historic class action, Nera Capital Director, Aisling Byrne, said this investment will ensure truck owners receive justice for the damage the 14-year cartel caused. "The agreements covered both medium-duty trucks and heavy-duty trucks and affected the entire European Economic Area. While the cartel stopped running in 2011, the after affect was felt by truck owners in the following years, and it is important that those affected get their chance for justice.”
Nera Capital has appointed a leading German law firm to act for the claimants in the case.
When the European Commissioner for Competition Margrethe Vestager handed down the historic fine in 2016, she said it was not acceptable that the manufacturers were part of a cartel instead of competing with each other. In 2016 she commented on the more than 30 million trucks on European roads, which accounted for around three quarters of inland transport of goods in Europe, playing a vital role for the European economy.
Ms Byrne echoed these comments and said the firm's success is built through its strong industry relationships and a passion for justice. “This is a pivotal moment for corporate accountability,” she added. “Our investment underscores our commitment to supporting small businesses and consumers who have been impacted by antitrust violations. With a strong track record of committing over £475 million, in aggregate, into claims, we are excited to offer our support to truck owners across Europe, because we believe justice should be accessible to all. Nera Capital stands firm in its mission to level the playing field against corporate misconduct. This class action is not just about compensation but also about holding accountable those who undermine fair competition."
About Nera Capital
· Established in 2011, Nera Capital is a specialist funding provider to law firms.
· Provides Law Firm Lend funding across diverse claim portfolios in both the Consumer and Commercial sector.
· Headquartered in Dublin, the firm also has offices in Manchester and The Netherlands.
. Member of European Litigation Funders Association.
The European truck cartel case has long stood out as one of the most prominent examples of litigation funders looking to support mass claims against large companies over their breaches of competition rules. The latest announcement of a funder supporting such a claim continues to demonstrate the importance of these case types.
An article in Business Mondays highlights a recent announcement from Nera Capital, a legal finance firm based in Dublin, that it will be funding over 25,000 claims as part of the truck cartel case. The claims brought against truck suppliers has been one of the most high profile class action cases in Europe, following the 2016 European Commission ruling which found MAN, Volvo/Renault, Daimler, Iveco, and DAF guilty of breaking EU antitrust rules over their co-ordination of pricing.
Aisling Byrne, director at Nera Capital, highlighted the importance of third-party funding for the claims being brought against these truck manufacturers, stating that “while the cartel stopped running in 2011, the after effect was felt by truck owners in the following years, and it is important that those affected get their chance for justice.” The article also states that Nera Capital has appointed a German law firm to provide legal representation for the claimants it is funding.
Byrne also emphasised that Nera Capital’s investment in the truck cartel case aligned with “its mission to level the playing field against corporate misconduct”, and that this case “is not just about compensation but also about holding accountable those who undermine fair competition.”
As LFJ reported earlier this month, the world of patent litigation funding has once again generated a high-profile dispute, as Apple pressed a court to enforce a subpoena against Omni Bridgeway over the funder’s alleged role in a patent infringement case brought against the technology giant. The legal fight continues to evolve last week, as the two parties seek to find favourable ground in a venue of their choosing.
An article in Reuters provides a recap of the events that have led up to the current standoff between Apple and Omni Bridgeway, before shedding light on the current state of affairs. At issue is the court venue following Apple’s filing of a motion to compel compliance regarding its subpoena of Omni Bridgeway for information relating to the MPH patent infringement lawsuit. The case had been assigned to the Delaware district’s chief judge, U.S. District Judge Colm Connolly, who has become a familiar name in the litigation funding world over his standing order enforcing disclosure of third-party funding in patent cases.
Unsurprisingly, Omni Bridgeway filed a motion to transfer the matter to the Northern District of California, stating that this court is the venue which “issued the subject subpoena and that is presiding over the underlying litigation’. The motion argued that this transfer “promotes judicial economy and prevents the risk of inconsistent rulings”, and went on to point out that “Litigating this issue in California is not inconvenient for Apple, a California corporation, with California lawyers party to the underlying California litigation.”
In response, Apple’s lawyers responded to the motion to transfer in a letter to Chief Judge Connolly, “injects unnecessary delay into the briefing, and will likely delay resolution of Apple’s motion to compel.”
Omni Bridgeway’s motion to transfer can be read here. Apple’s letter responding to the motion can be read here.
Whilst the majority of coverage on third-party legal funding tends to focus on established jurisdictions like Australia, the UK and US, one of the countries showing signs of life for the funding sector is India.
An article in Economic Times looks at the rise of litigation funders in India and explores how this niche but growing market has seen startup funders focus on arbitration and insolvency disputes as an area to establish a market foothold. The article highlights nationwide data that shows ‘a total of 7,567 companies across sectors were brought into administration until March end’ and that ‘45 million cases are pending in courts across the country, including about six million cases in 25 high courts and 83,800 cases in the Supreme Court.’
Speaking with top executives at funders and leading experts from Indian law firms, the Economic Times article examines how these issues within the legal system, combined with the current economic climate, have created opportunities for these funders to provide much-needed capital to alleviate the backlog of cases waiting in the courts.
Kundan Shahi, CEO of LegalPay, offered some insights into the funder’s current business strategy and explained that whilst they are largely focused on plaintiff-side funding, they “have also started to fund defendants in certain cases.” As for the underlying business fundamentals of LegalPay’s investment model, Shahi said, “We are expecting a maximum timeline of 36 months to recover our investments and an average IRR (internal rate of return) of 22-27%, with an average return of 12-15%, on a case-to-case basis.”
Outside of traditional litigation funders, there are companies like Mumbai-based SingleDebt, who provide legal advisory services to those embroiled in disputes with creditors. SingleDebt’s founder Harish Parmar, illustrated how the company assists its clients “through negotiation and mediation with creditors,” but for situations where litigation is unavoidable SingleDebt will “explore TPLF (third-party litigation funding) options to ease the financial burden on our clients.” Parmar goes on to explain that these funders can still provide significant value to their clients, by enabling them “to pursue their claims without depleting their resources.”
Litigation Lending Services (LLS), a pioneering force in the litigation funding industry for over 25 years, proudly announces the completion of a strategic $35 million credit facility with a leading Australian based global alternative asset manager. This credit facility further bolsters the Company's robust financial structure in tandem with its existing fund and balance sheet.
Known for its commitment to social impact investment alongside handling insolvency and commercial and class action claims, LLS continues its mission to support those in their legal battles while making a positive difference in the community.
As demonstrated by the recent announcement of the $180.4m settlement in the Stolen Wages Western Australia class action, LLS’s strategic approach to litigation financing combines rigorous case evaluation with a passion for driving positive societal change, making it an attractive opportunity for investors seeking both financial returns and meaningful contributions to the community.
"We are thrilled to have successfully secured a new finance partnership, reinforcing our financial stability and positioning us for continued growth and impact," stated Chair Shaun Bonétt. “This not only strengthens our ability to support meritorious cases but also reinforces our belief that everyone deserves fair access to legal recourse, regardless of their financial situation.”
With an impressive track record of fostering access to justice, Litigation Lending Services remains at the forefront of the industry. As LLS continues to celebrate its 25th anniversary, the funding further ensures that the Company is well positioned to continue its vital work providing crucial support to those who might otherwise lack access to the legal system.
Litigation Lending Services is (LLS) a leading litigation funder with 25 years of experience in supporting insolvency, commercial claims and class actions with a key focus on funding social impact litigation. With a strong financial foundation and a commitment to justice, LLS empowers claimants to pursue meritorious cases, driving both financial and societal benefits.
Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, is pleased to provide an update on its business for the 2024 financial year ended 30 June 2024.
We are pleased to report another successful year with eight investments concluding in the period generating realisations for LCM, inclusive of performance fees, totalling AUD$56.0m. This is compared to LCM’s invested capital of AUD$23.8m, representing a multiple on invested capital (MOIC) of 2.4x. This performance aligns with our long-term track record of an average MOIC of 2.7x from investments concluded within the last 13 years, and underscores the successful execution of our strategy.
Moreover, we have made a strong start to our 2025 financial year. Shortly after the 2024 financial year end, a single case investment concluded generating realizations for LCM of at least AUD$12.5m, including performance fees, compared to LCM’s invested capital of AUD$1.5m, representing a MOIC of 8.3x.
Period
Realisations (AUD$m)
Invested Capital (AUD$m)
MOIC multiple
H1
28.4
8.8
3.2x
H2
27.6
15.0
1.8x
FY24
56.0
23.8
2.4x
Post Period end
12.5
1.5
8.3x
The average duration of cases concluded in FY24 was 45 months - slightly longer than our general expectation of 36-42 months, which remains unchanged. This largely reflects the COVID related delays that we have previously communicated which impacted several of the investments that concluded in the period. Importantly, elongated time has not adversely impacted on investment performance.
We continue to invest in what we believe are the highest quality legal claims, collaborating with leading law firms and barristers in our respective markets. We have seen high demand for our capital in the second half of the year and expect to report New Commitments for FY24 in excess of AUD$250m (FY23: AUD$176m). It remains our key strategic priority to continue to grow New Commitments, and thus ensure LCM achieves additional financial scale.
Our current portfolio of investments, both direct investments that are entirely funded via our own balance sheet and those in which we are co-invested alongside our managed external funds, continue to perform in line with our expectations.
Patrick Moloney, CEO of LCM, commented: “The performance of our concluded investments in our 2024 financial year highlights the strength and effectiveness of our investment strategy. Through our rigorous investment process, we have assembled a high-quality portfolio of uncorrelated legal finance assets that are positioned to deliver attractive future aggregate investment performance. Given our access to capital, further growing New Commitments remains our key strategic priority and we are well on track. We see significant upside potential here.
“We look forward to updating our investors on our strategic progress with our full-year results presentation on
19 September and are excited about our future opportunities.”
Below is a brief summary of selected investments that concluded in the second half of our 2024 financial year.
Binding Settlement reached - Direct balance sheet Investment
A successful outcome in a dispute investment which forms part of LCMs portfolio of 100% direct investments has been achieved. The proceedings were heard in the Supreme Court of Western Australia and included two levels of appeal at which LCM’s funded party was successful at each level. A binding settlement deed has been executed by the parties resulting in the realisation of LCM’s investment. The investment is one of four legacy disputes held at cost within our financial statements. Details of the returns are highlighted below:
AUD$m
Investment performance
Invested capital
2.8
Investment return
9.2
Total revenue
12.0
MOIC
4.3x
Binding Settlement reached - Direct balance sheet Investment
A further successful outcome was achieved with respect to a portfolio of insolvency claims related to the failure of an Australian listed construction company. A binding settlement deed was executed by the parties resulting in the realisation of LCM’s investment. The investment also forms part of LCMs portfolio of 100% direct investments. Details of the returns are highlighted below:
AUD$m
Investment performance
Invested capital
2.8
Investment return
7.4
Total revenue
10.3
MOIC
3.7x
Furthermore, below is a summary of the investment that concluded shortly after our financial year end.
Bilateral Investment Treaty - Fund I Investment
LCM funded a claim advanced in respect of a breach of a bilateral investment treaty and brought under the International Centre For Settlement of Investment Disputes (ICSID) Convention. The Tribunal issued an award in July 2023 in favour of LCM’s funded party for USD$76.7m plus interest and costs. The Respondent sought to challenge the award, but the parties have now reached a settlement in advance of the annulment hearing. The terms of the settlement are confidential.
The claim forms part of LCM’s managed Global Alternative Returns Fund (“Fund I”) and was funded directly from LCM’s balance sheet (25%) and Fund I investors (75%). Details of the returns are highlighted below:
AUD$m
Investment performance
LCM performance metrics
Fund I performance metrics
Invested capital
5.9
1.5
4.4
Investment return
23.3
5.8
17.5
Total revenue
29.2
7.3
21.9
MOIC on investment
5.0
5.0
5.0
Performance fee*
-
5.2
(5.2)
Gross profit
23.3
11.0
12.3
MOIC inclusive of performance fees
5.0x
8.3x
3.8x
*The investment returns are subject to change based on the prevailing FX rate and timing of distribution
About LCM
Litigation Capital Management (LCM) is an alternative asset manager specialising in disputes financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital and the second is third party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding and Acquisitions of claims. LCM generates its revenue from both its direct investments and also performance fees through asset management.
LCM has an unparalleled track record driven by disciplined project selection and robust risk management.
Currently headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM listed on AIM in December 2018, trading under the ticker LIT.
Legal-Bay LLC, the premier Pre Settlement Funding Company, reports that they are seeing an uptick in lawsuits against negligent pyrotechnicians and residential homeowners in the wake of the 4th of July holiday. Fireworks injuries and property damages join the escalating lawsuits that have been filed due to building explosions at gas stations, chemical plants, and oil refineries, falling under such categories as worker's comp, premises liability, personal injury, wrongful death, and beyond.
Explosion lawsuits are filed more often than one would think. Whether in a place of business or a residential property, danger lurks for victims of others' negligence. Accidental gas leaks or faulty propane tanks are probably the most well-known type of house or building explosion, but sometimes, negligent installation by inexperienced workers or business owners looking to cut corners can lead to disaster. Likewise, if a person is injured or their property is damaged by fireworks—whether from a professional show or a neighbor's backyard—they are entitled to compensation.
Explosion payouts obviously vary depending on the severity of the damage caused and extent of injuries. Just last year, for example, a New Jersey man who suffered severe burns from an explosion while working on an electrical panel in 2019 sued his employer for gross negligence. The man was instructed to work on the electric panel even though he was not a licensed electrician. The resulting explosion inflicted burns over half of his body, requiring over 100 surgeries and a lifetime of future care. He was awarded $28MM for pain, suffering, and loss of ability to earn a salary.
Chris Janish, CEO of Legal-Bay, commented, "Extreme explosions can result in chemical burns, broken bones, and sometimes even death, not to mention the environmental impact and property damage that can occur. Legal Bay stands at the ready to assist victims of any type of explosion get the money they have coming to them."If you or a loved one was seriously injured or killed in an explosion, you may have grounds for a lawsuit. To apply for a cash advance lawsuit loan from your anticipated lawsuit settlement, please visit the company's website HERE or call 877.571.0405 where agents are standing by to hear about your specific case.
In a post on LinkedIn, The Association of Litigation Funders of Australia (ALFA) announced that it is welcoming Shine Lawyers as its newest Associate Member. Shine Lawyers becomes the 13th Associate Member of ALFA, following the inclusion of law firm Mackay Chapman earlier this month.
Shine Lawyers has been involved in some of the most prominent class action cases in Australia, with recent examples including the Northern Territory Stolen Generation and PFAS Contamination class actions. The law firm was founded in 1976 by Kerry Shine in Toowoomba, Queensland, and has since grown to include over 1,000 team members across 42 locations. In 2015, Shine expanded into New Zealand for the first time with acquisition of Andrew Hooker Lawyers in Auckland, which now also includes an office in Christchurch.
In the post, ALFA said it was looking forward to working with Vicky Antzoulatos and Craig Allsopp, Joint Heads of Class Actions, and the rest of the team at Shine Lawyers.
Whilst it is often the funding of large class action claims or high-profile patent infringement cases that receive the most attention, one of the most unique areas of legal funding is in the world of family disputes for high-net-worth individuals. These cases range from inheritance and estate disputes to contentious divorce proceedings, all of which come with significant financial sums at stake.
An article in Bloomberg Law provides insight into one such case of third-party funding for a family dispute, as it focuses on Therium Capital Management’s involvement in the legal fight over the estate of late Saudi billionaire, Osama Ismail Abudawood. Therium reportedly began providing litigation funding to Abudawood’s wife and daughter, Eleanor de Leon and Alaa Abudawood, who were embroiled in a legal fight with Abudawood’s brothers over the estate.
Therium provided funding to support de Leon and her daughter’s case in 2019, with the pair looking to secure a larger portion of the estate, after they accused Abudawood’s brothers of refusing to honour the deceased’s wishes to see his wife and daughter ‘to be bought out of the company at the fair market value of their interest in his holdings.’ A global settlement between the parties was reached in 2022, but Eleanor and Alaa reportedly refused to sign the agreement, which led to delays and saw the case reach the US District Court for the Central District of California where Abudawood’s brothers successfully petitioned the court to enforce the settlement.
Bloomberg Law’s reporting suggests that despite Therium’s initial expectations of receiving a payout from a 10-figure settlement that Abudawood’s wife and daughter hoped to secure, in the end, the pair’s pay out from the settlement is valued at $88 million. This disappointingly low sum caps a difficult engagement for the litigation funder when combined with many years of delays, 18 lawsuits in three separate jurisdictions, and even one instance of their clients being fined more than $750,000 for contempt.
Robert Martorana, founder of REMO Litigation Finance, spoke with Bloomberg Law and noted that the Abudawood case shows the difficulties for third-party funders when engaging in family disputes. Martorana explained that, “funders tend to avoid cases where there’s a potential for people to act commercially unreasonable,” which is most often the case “when there are personal elements involved.”
Fenchurch Legal a specialist provider of litigation funding for small and medium-sized UK law firms, today announced the appointment of Nathan Patterson as Senior Financial Controller.
Nathan brings a wealth of experience to the role, with a proven track record of effective financial management and strategic planning. He previously held key financial positions at a boutique advisory firm in Dubai and a Plc house-building company in the UK.
A qualified accountant and tax advisor, Nathan is both FCCA and CTA qualified. He will play a pivotal role in driving Fenchurch Legal’s continued growth and financial success. In his new role, Nathan will head the Finance department, ensuring accurate financial reporting, strategic budgeting, and the overall financial health of the company. He will also oversee risk management, conducting thorough financial due diligence on all borrowers. His role is pivotal in maintaining Fenchurch Legal on a path of robust financial health and sustainable growth.
Nathan Patterson commented on his appointment: "I am excited to join Fenchurch Legal at such a key time in the company’s growth period and contribute to its continued success. My goal is to enhance the financial operations and support the company's growth ambitions through sound financial management and strategic planning."
Louisa Klouda, CEO of Fenchurch Legal, said: "We are delighted to welcome Nathan to our team. His extensive experience will be of great value to us as we experience a period of rapid growth. He will help us continue to scale our operations and expand our client base. Nathan’s appointment underscores Fenchurch Legal’s commitment to building a strong and experienced team to support our growth plans."
Despite the industry's best efforts, accusations of litigation funding being a potential security threat have yet to be quashed. Just the opposite in fact, as a letter from a GOP member of Congress to Chief Justice of the Supreme Court, John Roberts, requests the court "consider enacting transparency rules including mandatory disclosure of outside funding in federal lawsuits."
As Bloomberg Law reports, Rep. James Comer (R-Ky.), Chair of the Committee on Oversight and Accountability, wrote to Justice Roberts that, “Understanding the funding terms, sources, financial details, and potential conflicts of interest are vital to ensuring informed decision-making and guarding against perceptions of undue influence."
The U.S. Chamber of Commerce introduced the concept of litigation funding being a potential security threat, as part of the Chamber's push to regulate (some might say outright ban) the practice of litigation funding. Thus far, the Chamber has seen some traction from members of the Republican party. Rep. Darrell Issa (R-Ca.) recently introduced a discussion draft of legislation that aims to mandate disclosure of litigation finance agreements in civil lawsuits.
In Comer's letter, he notes specific examples where he claims that 'serious questions' are raised. Those being a lawsuit against PG&E Corp., funded by Apollo Global Management and Centerbridge Partners, as well as Fortress Investment Group's $6.8 billion investments into litigation finance. Fortress is part-owned by the Abu Dhabi sovereign wealth fund.
Chief Justice Roberts has yet to publicly comment on the issue. His top adviser, Judge Robert M. Dow Jr., has dismissed concerns over big money and foreign influence in funding agreements, stating that “As long as the funder doesn’t have control, I don’t think it’s gonna be a major issue for judges."
Litica is pleased to announce it is now a member of the Managing General Agents’ Association (MGAA).
Having joined as members in June, this week marked Litica's first time at the MGAA Annual Conference. It was a full day of interesting speakers and valuable networking opportunities at the exhibition. It was good to reconnect with our peers and industry leaders, explore innovative solutions, and discuss the future of MGAs.
We’re looking forward to becoming more involved in the association as well as leveraging the resources and opportunities that being a member unlocks for our business and our people.
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