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Westfleet Advisors Adds Federal Prosecutor and Litigation Finance Veteran To Growing Executive Team

By John Freund |

NASHVILLE, October 10, 2019—Westfleet Advisors, the leading U.S. litigation finance advisory firm, announced today that it has expanded its executive team with the additions of Barry Kamar and Michael Perich, both as Vice President and Legal Counsel. Mr. Kamar was most recently an Assistant United States Attorney (AUSA) in New Jersey. Mr. Perich joins Westfleet from AmLaw 200 law firm, Ice Miller.

“We are thrilled to add such high-quality talent to our team, enabling us to keep pace with the growing demand for our independent litigation finance advisory services,” said Charles Agee, founder and CEO of Westfleet Advisors. “Barry and Michael have diverse backgrounds in law, financial analysis, and litigation finance that ideally complement and bring important new perspectives to our service offerings. They will deliver tremendous value to our clients as they help them navigate litigation finance opportunities.”

Mr. Kamar spent nearly a decade in public service before joining Westfleet, first as an enforcement attorney in the Securities and Exchange Commission’s New York office and later as an AUSA in New Jersey. He brings years of experience in evaluating the strengths of cases involving financial fraud, and his extensive courtroom experience includes nearly a calendar year of trial work in a large RICO prosecution. Mr. Kamar previously worked as an investment banking analyst at Morgan Stanley & Co., where he developed skills in financial analysis, due diligence and deal negotiation.

“I’m excited to combine my trial and corporate finance experience for the benefit of parties seeking litigation funding,” said Mr. Kamar, who was named co-chief of the U.S. Attorney’s Office’s public protection unit while serving as an AUSA. “There was no doubt that Westfleet was the right place for me to do that, given its industry stature and commitment to operating ethically and transparently.”

Mr. Perich brings substantial experience in litigation finance to Westfleet. He previously worked at two leading litigation finance providers, where he underwrote litigation funding deals across a wide range of subject matter and assessed the strengths of new legal claims. At Ice Miller, he was the firm’s primary resource to answer questions about litigation funding and to structure unique contingency or alternative fee arrangements.

“Having seen litigation funding deals from the perspective of both funders and law firms, I appreciate the need for parties seeking financing to have a truly independent advisor at the table,” said Mr. Perich. “Westfleet recognized that need years ago. That’s one of the reasons Charles and Westfleet are so well respected as leaders in the industry.”

Mr. Perich will work from Chicago, while Mr. Kamar will be based in New York.

About Westfleet Advisors

Westfleet Advisors is the leading litigation finance advisor in the United States. It was founded in 2013 to bring greater transparency and efficiency to the litigation finance market by equipping users of litigation financing with expertise and resources. Our core mission is to ensure claimholders and lawyers have all the information they need to be successful with litigation financing. Our senior leadership has been active in the litigation finance industry since 1998.

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NYU Center on Civil Justice Hosting Litigation Finance Conference

By John Freund |
The Center on Civil Justice recently launched its Dispute Financing Library, a free, neutral repository of documents relating to the third-party litigation funding industry.  It is online at www.DisputeFinancingLibrary.org. To celebrate the Library's launch, the Center is hosting a luncheon and conference on the present and future of the litigation funding industry, looking at the state of the market and potential ethical concerns, with a keynote by Richard Painter. The Future of Dispute Finance: Pricing, Profits, and Policy will take place on October 18, from 12pm-4:30pm, in Greenberg Lounge in Vanderbilt Hall, 40 Washington Square South. For more information and to RSVP, visit https://tinyurl.com/y23baryf.
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Frances Coats joins Augusta as General Counsel

By John Freund |

London 10th October 2019, Augusta today announces the appointment of Frances Coats as General Counsel, based in London.

Frances joins from diversified insurance business The Ardonagh Group, where, as Chief Counsel, she managed the Corporate and Commercial legal needs of the group. Coats was named as Legal 500 In-House Insurance Individual of the Year 2019, Legal Business’ Rising Star In-House Counsel of the Year 2019 and was listed in The Lawyer’s Hot 100 2019.

Frances’s recruitment is a further addition to Augusta’s management group following the arrivals of Proskauer’s Director of Professional Resources Polly Bahl as Chief Operating Officer (COO) and FTI Consulting Managing Director Leor Franks as Chief Marketing Officer (CMO). These additions reflect Augusta’s continued growth and investment in professional functions to support the increasing demand for dispute and litigation funding.

Commenting on the appointment, Louis Young, Managing Director at Augusta, said: “We’re pleased to welcome Frances to Augusta. With her deep experience of financial services in-house legal management, Frances will play an important role in advising on the next phase of our growth”.

Frances Coats commented: “I’m delighted to be joining leading litigation funder Augusta. As the business continues to grow, entering new markets and forming strong strategic client relationships, I’m looking forward to supporting Augusta's management team in the UK and internationally”.

About Augusta:

- Established in 2013, Augusta’s scale enables us to make decisions in market-leading timeframes and fund cases of any size.

- Augusta is organised into a series of specialist practice groups: Arbitration, Class Action, Competition, Consumer, Intellectual Property and Litigation, and sectors including Financial Services and Construction & Energy.

- By the end of H12019, Augusta had funded 213 claims with a market-leading win ratio of over 80%.

- Augusta has offices in London, Sydney, Melbourne and Toronto.

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Legal-Bay Settlement Funding Announces Extended Deadlines for Victims of Sexual Abuse

By John Freund |
NEW YORKOct. 8, 2019 /PRNewswire/ -- Legal-Bay, the premier lawsuit funding company, previously reported on Governor Cuomo's new legislation to extend filing deadlines for sexual abuse survivors in the state of New York. The law went into effect last month, and since then, over 500 new cases have been filed. While most of the lawsuits targeted churches or scouting organizations, many were against Rockefeller UniversityHospital, where Reginald Archibald (now deceased) was employed as a pediatrician for decades, enabling him to sexually abuse over 1000 children. While the hospital has already settled over 200 cases, details regarding payout amounts have not yet been divulged. If you or a loved one require an immediate cash advance from your sexual abuse lawsuit, please visit the company's website: http://lawsuitssettlementfunding.com or call: 877.571.0405 Chris Janish, CEO, commented on the company's focus of assisting plaintiffs in similar situations, "We applaud the efforts in New York and New Jersey to extend the statute of limitations on all sex abuse cases, and we are hopeful that more victims will take this opportunity to obtain some justice after years without a voice." New legislation in more than a dozen states offers sexual abuse victims the ability to sue their abusers up until they turn 55. Because of similar landmark decisions, Legal-Bay predicts an influx of new filings by the end of 2019. Legal-Bay is an advocate for victims of sexual abuse across the country, and is well-versed in clergy abuse litigation, especially in situations where Catholic churches have filed for bankruptcy to limit their payouts. Even in those cases, the pre settlement cash company was able to provide a lawsuit cash advance to victims across the country, including NY and NJ. If you have already filed a sexual abuse lawsuit, you can apply for presettlement funding at: http://lawsuitssettlementfunding.com or call: 877.571.0405 Legal-Bay's programs are non-recourse lawsuit cash advances, also known as case funding, which means you only repay the settlement advance if you win your case. None of the programs should be considered to be a lawsuit loan, lawsuit loans, settlement loans, settlement loan, pre-settlement loans, or a pre-settlement loan. Contact: Chris Janish, CEO
Email: info@Legal-Bay.com 
Ph.: 877.571.0405 SOURCE Legal-Bay LLC
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Divorce Funding Has Arrived

By John Freund |
Couples save for weddings, not divorces. As a result, many are cash-strapped and taken aback by the high costs of divorce. This places undue burden on attorneys, who must often choose between working on contingency or turning away clients. Fortunately, divorce attorneys can leverage divorce funding options, which allow receivables to be covered as they emerge. As reported in Bloomberg, the average cost of a contested divorce ranges from $15-$30k. Of course some reach into the millions and last for many years. Many divorce attorneys end up bearing the brunt of these costs, or turning away clients who can't afford the expense. Litigation funding has permeated the Legal Services industry, and divorce law is no exception. Unlike traditional banks and finance companies which assess a prospective client's eligibility based on assets, credit or income score, divorce funders base eligibility off of the expected settlement of the claim. As a result, funding becomes available for legal fees, expert costs and living expenses. As with other consumer funding, divorce funding can enable clients to hire the best possible attorney - one whose billable hour might be outside the scope of the client's normal budget. This optimizes the outcome in the client's favor. Divorce funding is a relatively new sector of the consumer legal funding space - having truly emerged in the last decade. And with the high cost of divorce, it's likely here to stay.

Debut Of Litigation Finance Firm BlueWhite Legal Capital Marks Latest Jules Kroll Venture, Leveraging Decades Of Legal And Business Success

By John Freund |
NEW YORKOct. 7, 2019 /PRNewswire/ -- BlueWhite Legal Capital ("BlueWhite" or "the Company"), a privately-held litigation finance firm led by Jules KrollAaron RubinsteinEarl Doppelt, and Jack Blackburn – all prominent business, legal and finance professionals – today announced its official company launch. BlueWhite, which will focus on financing commercial litigation, is distinguished in an increasingly important industry by its experienced team; agile, strategic, and highly-focused approach; skills in asset tracing and recovery; and committed capital. "My colleagues and I are excited to launch BlueWhite Legal Capital and help build a leading firm that can deliver real value to companies and law firms," said Jules Kroll, Principal of BlueWhite and Chairman of K2 Intelligence and Kroll Bond Ratings. "We are veteran problem solvers who think like the lawyers and corporate executives we support, giving us powerful insight and a unique competitive profile." Mr. Kroll noted that commercial litigators are under increasing pressure to find business solutions that allow them to pursue meritorious cases with the right economics, and are finding litigation finance a value added approach. "Litigation finance is a powerful tool that can give companies and law firms a competitive advantage while enhancing efficiency and profitability. BlueWhite's team and I have worked to ensure that from day one, we are delivering these advantages with top-of-the-line capabilities, capital to deploy, and a culture of excellence and integrity," Mr. Kroll concluded. Uniquely Qualified Team of Business, Law, and Finance Professionals 
BlueWhite is led by its four principals: Jules KrollAaron RubinsteinEarl Doppelt, and Jack Blackburn. Each brings unparalleled experience at the highest levels of business, law, and finance:
  • Jules Kroll pioneered the business intelligence industry. He is the founder of K2 Intelligence, Kroll Bond Ratings, cybersecurity firm BlueVoyant, and Kroll Inc. He is currently the Chairman of Kroll Bond Ratings and K2 Intelligence. K2 Intelligence, which is an intelligence, investigations, and asset recovery firm, is one of the strategic owners of BlueWhite.
  • Aaron Rubinsteinmost recently a partner at Arnold & Porter Kaye Scholer LLP, chaired the Kaye Scholer litigation practice for more than a decade.
  • Earl Doppelt was formerly a senior executive and general counsel of several major multinational corporations, including The Dun & Bradstreet Corporation, The Nielsen Corporation, and Walter Energy, Inc.
  • Jack Blackburn is a former Wall Street executive with experience in litigation finance, having spent his career with Freddie Mac, Citicorp, Merrill Lynch & Co., and Burford Capital.
The BlueWhite Approach 
The Company's strategy will focus on commercial litigation, with specific targeted areas to include breach of contract, securities, M&A, antitrust, fraud, breach of duty, bankruptcy, intellectual property, and asset recovery. BlueWhite's strategic relationship with corporate investigations firm K2 Intelligence is expected to provide a distinct advantage with respect to matters that involve tracing hidden assets and enforcing legal judgments. BlueWhite will target average initial litigation finance commitments between $5 and $15 million, while maintaining the flexibility to evaluate each matter on its own merits and, where appropriate, provide financing outside of this range. The collective experience and expertise of its principals and its relationship with K2 Intelligence will enable BlueWhite to be a highly effective strategic partner to lawyers, corporate executives, and other claimants. Committed Capital 
BlueWhite is backed by Magnetar Capital, a leading alternative asset manager with over $12.9 billion of assets under management1, and a wide range of alternative credit and fixed income, systematic investing, and energy and infrastructure investment strategies. The Company will operate with committed capital, allowing it to move quickly for the benefit of its funded parties. 1 Moelis & Company LLC acted as exclusive financial advisor and placement agent for BlueWhite Legal Capital. Arnold & Porter served as BlueWhite's legal advisor. For further information about BlueWhite Legal Capital, please visit BlueWhiteLegalCapital.com. SOURCE BlueWhite Legal Capital
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Financial Poise™ Announces “Ethical Problems Associated with Paying for Litigation,” a New Webinar Premiering October 16th at 1:00 PM CST through West LegalEdcenter™

By John Freund |

To learn more, click here.

The webinar will be available on-demand after its premiere. As with every Financial Poise Webinar, it will be an engaging and plain English conversation designed to entertain as it teaches.

About Financial Poise –  Financial Poise has one mission: to provide reliable plain English business, financial and legal education to investors, private business owners and executives, and their respective trusted advisors. Financial Poise content is created by seasoned, respected experts who are invited to join our Faculty only after being recommended by current Faculty Members. Our editorial staff then works to make sure all content is easily digestible. Financial Poise is a meritocracy; nobody can “buy” their way into the Financial Poise Faculty. Start learning today at https://www.financialpoise.com/

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Bryant Park Capital Arranges $104.5 Million in Capital for Legis Finance

By John Freund |
NEW YORK, NY / ACCESSWIRE / September 23, 2019 / Bryant Park Capital ("BPC"), a leading middle market investment bank, announced today that Legis Finance Ltd. ("Legis" or the "Company") recently closed on a $104.5 million capital raise transaction with a global investment management firm. This financing adds to its current insurance and merchant banking capacity, and gives the Company a long-term capital partner to finance operations and originations.
BPC served as the exclusive financial advisor to Legis in connection with this transaction. "The Bryant Park Capital team acted as a true extension of our company and had our best interests in mind every step of the way. We could not have been more pleased with their professionalism and expertise in positioning the opportunity and helping us gain senior level access to leading specialty finance investors. I would highly recommend their services to any originator seeking to raise institutional capital," said Tim Scrantom, Managing Director at Legis Finance. About Legis Finance, Ltd. Founded by seasoned commercial litigation funding executives who launched one of the industry's first institutional investment funds in 2007, Legis was formed to disrupt the traditional commercial claim investment marketplace. Legis' model is centered around providing independent advice on structuring litigation finance investments and insurance solutions to leading global law firms. Through its partnership with one of the world's largest insurance groups, and now a global investment management firm, Legis has developed a suite of novel products geared to helping law firms and their clientele invest in large-scale commercial litigation assets. For more information about Legis, please visit www.legisfinance.com About Bryant Park Capital Bryant Park Capital is an investment bank providing M&A and corporate finance advisory services to emerging growth and middle market public and private companies. BPC has deep expertise and a diversified, well-founded breadth of experience in a number of sectors, including financial services, healthcare services and, more recently, cannabis. BPC has arranged lines of credit, raised growth equity, and assisted in mergers and acquisitions for its clients. The BPC team has completed over 300 assignments representing an aggregate transaction value of over $64 billion. For more information about Bryant Park Capital, please visit www.bryantparkcapital.com. Contact: Dan Avnir, Managing Director 212-798-8202 davnir@bryantparkcapital.com SOURCE: Bryant Park Capital
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Some Considerations for IP Lawyers Regarding Litigation Finance

By John Freund |
The recent LF Dealmakers conference in NYC highlighted several key issues facing the funding industry. And there exists a clear overlap between litigation funding and IP, given that IP is the most-funded legal sector at the moment (additionally, the organizer of LF Dealmakers, Wendy Chou, hosts an annual IP Dealmakers event). So naturally, one of the topics discussed at LF Dealmakers is how IP lawyers should interact with the funding market. As reported in Above the Law, it's imperative that IP attorneys begin fostering relationships with funders. This includes discussing a funder's specific interests, submitting cases for diligence, and questioning funders as to how their service can benefit one's IP practice. The good news is that funders actually want to engage with attorneys - it's how they source investments, after all - so building rapport with funders shouldn't be too difficult. Funders are even looking at ways to innovate their product to enable partnerships with law firms (portfolio, defense-side, and small claims funding all come to mind). What's more, even with the devaluation of patent cases due to recent legislation, that hasn't dampened the funding community's interest in the sector. Patent claims are notoriously costly and time-consuming so there will always be a need for litigation funding, even if the risk/reward ratio isn't quite what it once was. One panelist at the LF Dealmakers conference recounted a story where one partner at an IP firm confirmed that the firm does not use funding. Meanwhile, another partner was actively soliciting funding for one of their claims. This underscores the need for IP lawyers to delineate a clear strategy with regard to funding - to what extent they will pursue it, and how they plan to approach the market. Like it or not, litigation funding and IP are highly-intertwined. Any IP lawyer who refuses to recognize this brave new world is missing out on a resource that his or her competitors are clearly leveraging.

Modeso LLC Announces New Senior Credit Facility

By John Freund |

KATONAH, NY / ACCESSWIRE / October 1, 2019 / Modeso LLC dba RapidFunds ("RapidFunds" or the "Company") announced today that it has closed on a $70 million term loan facility, consisting of a $40 million delayed draw term loan and $30 million accordion feature, with a multi-billion dollar institutional investment firm. This financing provides the Company a long-term capital partner to enable RapidFunds to grow its business and expand its network of law firm relationships.

Founded in 2004 by a group of former career attorneys, RapidFunds is a leading post-settlement litigation finance company that is engaged in accelerating the working capital conversion cycle for U.S. plaintiff law firms awaiting disbursement of proceeds from a legal settlement. The Company has funded over 2,300 transactions representing over $160,000,000 in total origination volume.

"We are delighted to have completed this important financing transaction for RapidFunds," said Peter Speziale, President & CEO of the Company. "Our new senior credit facility provides us with significant capital to expand our business, as well as a long-term partner that will add tremendous value to our company. We'd also like to extend our appreciation to Bryant Park Capital, who was invaluable to RapidFunds over the course of this financing process."

Bryant Park Capital LLC served as exclusive financial advisor to RapidFunds in connection with this transaction.

About RapidFunds

For over 15 years, RapidFunds has assisted U.S. plaintiff law firms in accelerating the receipt of attorney fees in legal settlements. With a focus on superior client service and speed of execution, the Company has provided innovative financing solutions to hundreds of law firms nationally.

For more information about RapidFunds, please visit www.rapidfunds.com.

About Bryant Park Capital

Bryant Park Capital ("BPC") is an investment bank providing M&A and corporate finance advisory services to emerging growth and middle market public and private companies. BPC has arranged lines of credit, raised growth equity, and assisted in mergers and acquisitions for its clients. BPC's professionals have completed over 300 assignments representing an aggregate transaction value of over $64 billion.

For more information about Bryant Park Capital, please visit www.bryantparkcapital.com.

Contact: Bryant Park Capital Joel Magerman, Managing Partner Phone: (212) 798-8212 Email: jmagerman@bryantparkcapital.com

Matt Pennino, Managing Director Phone: (212) 798-8216 Email: mpennino@bryantparkcapital.com

RapidFunds Peter J. Speziale, President & CEO Phone: (914) 552-4261 Email: pspeziale@rapidfunds.com

SOURCE: Modeso LLC dba RapidFunds

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The Association of Litigation Funders of England and Wales appoints Susan Dunn as Chair

By John Freund |
London 2 October 2019: The Association of Litigation Funders of England & Wales (“the ALF”) today announced the appointment of Susan Dunn as Chair at the ALF’s Annual General Meeting. Susan Dunn currently serves as a Director of the ALF and succeeds Leslie Perrin, following his expression of a desire to stand down this year after serving as Chair for almost 8 years. Susan Dunn is one of the co-founders of Harbour Litigation Funding, one of the industry’s leading litigation funders.  Susan qualified as a solicitor in 1992 and has worked as a commercial litigator in both the United Kingdom and the United States where she was also a diplomat (Vice-Consul Investment) for the British Government.  Susan was central to the completion in 2011 of the Code of Conduct in England and Wales for Litigation Funders and the formation of the ALF in 2011. Leslie Perrin said: “Susan is one of the pioneers of the litigation funding industry and she has worked tirelessly to raise awareness of how litigation funding can promote access to justice and facilitate the resolution of disputes. Under Susan’s leadership, the ALF will continue to be regarded as embodying the best practice gold standard of the litigation funding industry.” Susan Dunn, Chair of ALF said: “It is an honour to take over the Chair of the ALF from Leslie, who took on the leadership of the ALF when it was formed in November 2011.  His work has ensured that our members adhere to the highest standards at a time of growth in litigation funding. I look forward to continuing to work with Leslie and all of my other colleagues in the industry, as well as the Government and regulators, and to ensure excellence in the provision of litigation and arbitration funding as the industry continues to grow and develop.” The Association of Litigation Funders is an independent body that has been charged by the Ministry of Justice with delivering self-regulation of litigation funding in England and Wales.  Litigation funding is the provision by a third party of finance to a party to litigation or arbitration, which is used to pay for the legal costs of the dispute, in exchange for the funder taking a share of the proceeds in the event of a successful outcome. Media enquiries Desiree Maghoo Questor Consulting T: +44 (0)7775 522740 dmaghoo@questorconsulting.com About the Association of Litigation Funders The Association of Litigation Funders (the ALF) is an independent body that has been charged by the Ministry of Justice with delivering self-regulation of litigation funding in England and Wales. Litigation funding is the provision by a third party of non-recourse finance to a party to litigation or arbitration, which is used to pay for the legal costs of the dispute, in exchange for the funder taking a share of the proceeds in the event of a successful outcome. The litigation funding industry has established and paid for its own regulation and defined best practice, helping to protect claimants who seek the rational management of financial risk in litigation and arbitration. By working with a Funder Member of the ALF, parties accessing litigation funding are assured that they will find an organisation that strives to meet the high-quality standards that should define this industry. The ALF Code of Conduct sets out the standards by which all Funder Members of the ALF must abide. It sets the standards for the capital adequacy of funders, sets out the specific, limited circumstances in which funders may be permitted to withdraw from a case, and outlines the way in which the roles of funders, litigants and their lawyers should be kept separate. The ALF also maintains robust and efficient complaints handling procedures. The ALF actively engages with government, legislators, regulators and other policy makers to shape the regulatory environment for litigation funding in England and Wales. ALF board members include Susan Dunn, Neil Purslow, Christopher Bogart, Jonathan Barnes who was re-elected at the AGM and Rob Rothkopf, Managing Partner of Balance Legal Capital LLP, who joins the board for the first time. Funder members of the ALF include Augusta Ventures Ltd, Balance Legal Capital LLP, Burford Capital, Calunius Capital LLP, Harbour Litigation Funding Ltd, IMF Bentham, Innsworth Advisors Ltd, Redress Solutions PLC, Therium Capital Management Ltd, Vannin Capital PCC and Woodsford Litigation Funding Ltd. For more information please visit: http://associationoflitigationfunders.com/
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Burford Capital Brings Columbia Law School Study to Court in Bid to Uncover Market Manipulation

By John Freund |
Burford Capital has commissioned a study by Joshua Mitts of Columbia Law School which found that there is indeed evidence to back the funder's claim that it was the victim of market manipulation in the wake of the Muddy Waters attack which shed 50% of the stock's valuation in a single day. Burford is presenting the study in court to compel the London Stock Exchange to release the names of the short-seller sho it says manipulated the trading. According to City A.M., Burford is accusing market manipulators of 'spoofing' and 'layering,' whereby a trader issues a heavy dose of sell order on a particular stock, then quickly cancels those orders. The idea is that the cancelled trades place downward pressure on a stock and can lead to a bear-rush - or selloff - which any short-seller will of course benefit from. Carson Block, Muddy Waters' founder, denies any allegations his firm was involved in the spoofing and layering tactics. He alleges these are tools used by high-frequency traders and computer algorithms, which he claims his firm has zero capability of facilitating. Block contends that his company's public short of Burford is what led to the stock decline, and that any spoofing or layering - if it did occur - was not his firm's doing. But Burford isn't so sure. The funder is seeking to compel the LSE to divulge the identities of the spoofers/layerers, and has petitioned the High Court for an order. The funder hasn't ruled out civil litigation and even criminal proceedings against those involved.

Why Litigation Funding is Surging in Popularity in India

By John Freund |
Third party funding is taking off in India, thanks in part to a robust construction and infrastructure sector that is asset and debt-heavy, yet encumbered with the prospect of litigation. As reported by CNBC, there is no statutory bar on litigation funding in India. In fact, amendments to Order XXV, Rule 1 of the Code of Civil Procedure, 1908, have established that courts have the power to secure costs from litigation funders by asking them to become a party and meeting a costs order. And The Supreme Court of India has already ruled that litigation funding does not violate the age-old tort of champerty. Recently, large conglomerates in the infrastructure and EPC sector have been engaging with third party funders. Distressed debt is a major factor for these companies, as is a recent court ruling which makes it easier for creditors to pursue defaulters in insolvency litigation once they have secured an adverse court/arbitration order. This ruling is forcing EPC companies to try to resolve litigation much sooner than they otherwise would, and that is prompting their inviting litigation funders into the mix. Hindustan Construction Company Limited and Patel Engineering Limited are two prime examples. Both are pursuing claims against government-backed entities, so there is the added security that the defendants are solvent and credit-worthy and will eventually fulfill any payment obligation. In each of these examples, the litigants have structured their funding agreements as assignments of the claims themselves to the litigation funder. It's worth noting, however, that the funders in these cases are investment firms BlackRock and Eight Capital. We have yet to see how dedicated litigation funders may structure an agreement or partake in the Indian funding market. That said, the very fact that funding is taking off in India makes the world's second most populous nation one to watch where litigation funding is concerned.

Southern Response Wants to Avoid Paying Claims Funding Australia in Settlement

By John Freund |
New Zealand government insurer Southern Response wants to eschew a Court of Appeals order that  a portion of its settlement go to litigation funder Claims Funding Australia. Maurice Blackburn and Claims Funding took over representation for 3,000 claimants after a New Zealand court allowed an opt-out class action for only the second time in history. Southern Response is weighing an appeal to the decision, preferring to deal with the claimant pool directly. As reported in Share Chat, in 2012, Southern Response took over claims on policies written by failed insurance company AMI. The court allowed some 3,000 claimants to engage in an opt-out action, thereby including all potential claimants in the action unless they specifically opt out. The claim is being funded by Claims Funding Australia, and Southern Response is challenging the funder's ability to collect on its portion of any settlement in the case. Currently, the government insurer is dealing with a separate action - also in the Court of Appeal - and wants to address this action once the other has concluded. Maurice Blackburn and GCA lawyers - both representing the claimant pool - have said they plan to negotiate with Southern Response, but are taking the position that the insurer has no business eschewing the opt-out order from the court.

Security Costs Ordered in Harbour-Funded Feltex Claim

By John Freund |
Defunct New Zealand firm Felted Carpets - which collapsed just two years after its IPO - is being sued on behalf of over 3,000 investors. Harbour Litigation Funding had funded the claim up through 2015, with 'Stage 2 Funding' coming from a group of investors including Joint Action Funding. Now, the Supreme Court has ordered a $1.65MM security for costs order, which the plaintiffs are contesting. As reported in Share Chat, former Fay Richwhite banker Tony Gavigan, who is organizing the funding, has contested the need to pay security for costs. Gavigan also claims insurance is on the way - though none has been procured as of yet. Gavigan claims that his Stage 2 Funding is coming from a quintet of Auckland businessmen. The claim, meanwhile is headed for the Court of Appeal next month in regard to witness testimony. Gavigan wants more time to secure both funding and insurance, even through the claim is more than a decade old, and Feltex collapsed nearly 14 years ago.

With Nod to Burford, Rosenblatt Clarifies Accounting for Litigation Funding Arm

By John Freund |
UK law firm Rosenblatt announced the formation of a litigation funding arm when the firm went public last year. Now, in the firm's half-year report, CEO Nicola Foulston announced that Rosenblatt will be treating all un-concluded claims as costs, eschewing any potential concern over its accounting methodology. As reported in the Financial Times, Rosenblatt's announcement comes on the heels of the Muddy Waters allegations against Burford Capital. The core allegation is that Burford inflates its balance sheet by accounting for profits from cases that haven't been concluded yet. Foulston said her company will only account revenue/earnings from concluded claims, and not those that reach certain benchmarks and achieve a likely probability of payout. Both Rosenblatt and Burford adhere to IFRS 9 accounting standards, but those standards allow for some wiggle room when it comes to investment valuation. Burford's accounting is audited by Big-4 accounting firm EY, but that hasn't stopped some in the investment community from questioning its use of fair value accounting for inherently risky financial products. Clearly, Rosenblatt is distancing its own accounting practices from those of Burford. In the six months ending June 30th, Rosenblatt realized £10.2MM in firm revenue and £3.2MM in pre-tax profit. The company has invested £1.5MM in four claims, none of which have concluded yet. The firm also sold off its stake in a separate claim as a secondary for £2MM.
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Harvard Law Tackles Litigation Finance

By John Freund |
The latest issue of Harvard Law School's Center on the Legal Profession's 'The Practice' magazine features a robust examination of the litigation finance industry, including how the industry operates, who the major players are, how deals get done, and what law students should do to secure a career in legal finance. Selvyn Seidel of litigation funding broker Fulbrook Capital Management, and Elizabeth Korchin of Therium Capital Management cogently explain the diligence process, including both case examination and financial analysis. Korchin points out that her firm typically doesn't fund for anything less than $1MM, looks for a 10:1 multiple on damages/budget (which is the industry standard). Therium looks for their investment back, plus a 3x multiple. So if they finance a $10MM claim for $1MM, they'll accept a $4MM return, leaving the claimant and their law firm with the rest. Of course, there is an alignment of interests issue. If the claimant is mandated to pay out that $4MM to the funder, he or she is not going to settle for anything close to $4MM (in order to maximize his/her own return). In order to better align their interests with those of their clients, funders often tranche their funding structures, establishing benchmarks whereby their return escalates as a claim continues. That way, funders accept a smaller return for an early settlement, which better aligns all parties' interests. Should a case drag on, both the risk and cost of capital for a funder increase, so their payout ratio should as well. The article is very informative and worth a read. One interesting tidbit comes as advice to future litigation funders - those currently in law school. Seidel urges anyone seeking a career in funding to first enter the legal practice and gain expertise in a desired field - preferably one that frequently engages with funding (IP, trade secrets, insolvency). Once you've gained the requisite legal expertise and established a strong network from which you can source case investments, then consider transitioning into litigation funding.

Multi Funding USA Earns NMLS Certification

By John Freund |
Woodstock, NY—September 24, 2019 — Multi Funding USA, a leading pre-settlement funding provider serving law firms and attorneys, announced that it has received NMLS  (Nationwide Mortgage Licensing System and Registry) certification, indicating that the company has the financial resources and security protocols to satisfy the needs of lawyers and plaintiffs. Applying for NMLS certification is completely voluntary. Only a select group of litigation finance providers have applied and received NMLS designation. During the NMLS evaluation process, applicants undergo comprehensive business and personal background checks, financial audits, and a review of corporate documentation, including business plans, shareholder agreements, and financial statements. Applicants must also demonstrate compliance in safeguarding personal data and financial transactions. “We’re extremely proud to have earned this certification, which is certainly unique in the litigation finance sector. This designation demonstrates that our company has the financial resources, expertise, and technology to properly serve the attorneys and their clients that rely on pre-settlement funding to manage their daily living expenses,” said Michelle Fuoco, chief financial officer of Multi Funding USA. “Pursuing NMLS certification is complex, however. We felt this designation was essential to assure our customers that Multi Funding is a reliable, secure, and stable company that can fulfill all their pre-settlement funding needs.” Multi Funding USA invests in litigations for attorneys and their clients. The company has developed a system that can place funds into the hands of plaintiffs and attorneys in less than 24 hours, providing financial security in the often-lengthy pre-settlement period. About Multi Funding USA Headquartered in Woodstock, New York, Multi Funding USA is a major provider of specialized legal funding, attorney funding, and law firm funding services. With decades of lawsuit funding, business, and legal experience, the company’s founders have made it their focus to provide simple and fast services while maintaining a high standard of excellence. Multi Funding USA has provided millions of dollars of legal funding to plaintiffs and attorneys across the United States. www.multifundingusa.com
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Burford Capital briefing on fair value and return computations

By John Freund |
In response to investor inquiries, Burford Capital Limited (“Burford Capital” or “Burford” or “the Company”), the leading global finance and investment management firm focused on law, has today uploaded to the investor relations section of its website a briefing of the Company’s investment fair value and return computations.
The document can be found at http://www.burfordcapital.com/investors.

For further information, please contact:

Burford Capital Limited
Jim Kilman, CFA, Chief Financial Officer+1 917 985 9840
Robert Bailhache, Head of Investor Relations – email+44 (0)20 3530 2023
Macquarie Capital (Europe) Limited – NOMAD and Joint Broker+44 (0)20 3037 2000
Jonny Allison
Alex Reynolds
Jefferies International Limited – Joint Broker+44 (0)20 7029 8000
Graham Davidson
Tony White
Numis Securities Limited – Joint Broker+44 (0)20 7260 1000
Charlie Farquhar
Jonathan Abbott
About Burford Capital Burford Capital is the leading global finance and investment management firm focused on law. Its businesses include litigation finance and risk managementasset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the London Stock Exchange, and it works with law firms and clients around the world from its principal offices in New York, London, Chicago, Washington, Singapore and Sydney. For more information about Burford: www.burfordcapital.com This release does not constitute an offer of any Burford fund. Burford Capital Investment Management LLC (“BCIM”), which acts as the fund manager of all Burford funds, is registered as an investment adviser with the U.S. Securities and Exchange Commission. The information provided herein is for informational purposes only. Past performance is not indicative of future results. The information contained herein is not, and should not be construed as, an offer to sell or the solicitation of an offer to buy any securities (including, without limitation, interests or shares in the funds). Any such offer or solicitation may be made only by means of a final confidential Private Placement Memorandum and other offering documents.
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CFPB Determines Own Structure Unconstitutional; RD Legal Claim Likely to be Stayed

By John Freund |
Well, how often does this happen? A government agency officially declares itself unconstitutional. That's what the Consumer Financial Protection Bureau (CFPB) just did, as director Kraninger sent letters to House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell, stating in no uncertain terms that the agency is unconstitutional given the single-director-removable-only-by-POTUS structure. According to JD Supra, the CFPB has formally agreed with its numerous critics, which have moved that its actions against them be dropped because the agency is unconstitutional. Several courts have agreed, and currently there are two appeals courts - the 5th and 2nd circuits - hearing those cases. One of those involves RD Legal, the consumer legal funder being sued by the CFPB for alleged 'predatory lending' tactics. In the letters, Kraninger suggest simply removing the for-cause-removal provision, and letting the CFPB get on with business as usual. However, it is possible the end result here is a termination of the CFPBs enforcement activities entirely. For now at least, it seems the CFPBs claim against RD Legal is going nowhere. We'll have to wait and see if the CFPB will continue to be an enforcement entity at all.

Supreme Court of Queensland Finds LCM’s Funding Agreements to be Enforceable

By John Freund |
LCM has been funding a class action against the Gladstone Ports Corporation (GPC) on behalf of local fisheries and fishermen, who claim that GPCs port expansion project led to the collapse of the fishing market there. GPC had been arguing that LCMs funding agreement is unenforceable on the basis of champerty and maintenance, but the court just upheld the agreement as not champertous. As reported in Mondaq, the plaintiffs applied for a declaration by the court that their funding agreement is enforceable. LCMs counsel went so far as to argue that maintenance and champerty are essentially obsolete, and requested 'a decent common law burial' for the pair of torts. Plaintiff's counsel was a bit less aggressive, arguing that even if maintenance and champerty are enforceable, they do not apply to the enforceability of a funding agreement in a class action regime, which essentially carries with it the understanding that litigation funding will be part and parcel of the action. Courts have upheld funding agreements on such grounds in the past, so GPC had an uphill battle to climb here. They argued that LCM's funding agreements ceded too much control to the funder, and was therefore contrary to public policy. The court ultimately found in LCMs favor, ruling that too much control was not ceded, and that ultimately the court maintains the authority to determine what percentage of a settlement a funder is to receive. This essentially negates any argument of control on LCMs part, despite that certain mandates in the funding agreement appear to give the funder some sway over decisions which are made during the case. In the end, the Gladstone claim will go down as yet another brick in the now formidable wall which supports litigation funding agreements as enforceable in regard to maintenance and champerty.

LF Dealmakers Forum Brings Together Legal Funders, Lawyers, Academics and In-House Counsel

By John Freund |
This past Wednesday and Thursday saw New York City play host to the 2nd annual LF Dealmakers Forum. Hosted by Wendy Chou, whose popular IP Dealmakers Forum served as a launchpad for a similar conference aimed at the litigation funding market, the sold out two-day event brought together industry experts and novices alike. Keynote Address The event kicked off with a keynote address from Stephen Susman, founding partner of Susman Godfrey, and one of most successful plaintiffs lawyers in US. Susman recounted his early days as essentially one of the first litigation funders, having formed his contingency-only plaintiff-side law firm in the late 70s, back when the notion of contingency-only raised more than a few eyebrows. Susman saw himself filling a need in the marketplace, and indeed by the end of the decade had grown so popular that in 1981 he landed the cover of American Lawyer, which itself founded the legal journalism market. In the process of running his contingency-fee practice, Susman learned how to construct fee agreements that provide the right incentives, how to handle cases efficiently, how to compensate associates and partners properly, and how to teach younger lawyers to be effective at their trade. These are all ideals that Susman continues to preach. The theme of Susman's speech was how contingency leads to efficiency. The more skin in the game that attorneys have, the more likely they are to question the efficacy of their discovery motions, and reconsider or reevaluate their overall case strategy with an eye towards efficiency over simply a 'more is better' approach. "Lawyers who are paid by the hour have no incentive to be efficient," Susman said. "Even if they give you a discount. It’s like buying a suit at Barney’s half price. It’s already been marked up four-times." To that end, Susman advocates funders adopt a 50/50 fee model with the law firms they partner with. He recommends funders insist that law firms also maintain skin in the game. Susman further encouraged the industry to play an active role in reducing the cost of litigation. He advocates for public jury trials, as opposed to private dispute resolution. Susman ended his address by suggesting that funders have a role to play in terms of advising their clients on how best to negotiate with their law firms. While acknowledging that this advice goes against his own best interests, Susman stated unequivocally that litigation funders - with their legal expertise, and the fact that they are no longer lawyers and are therefore operating as advisors - can guide clients on how best to negotiate with law firms on fee arrangements. This is an area where funders can provide value to the client, outside of pure financing. Panel Discussions Panels ranged from a broad overview of the funding industry, to coverage of specific sector topics. In the first panel of the day, which provided a bird's eye view on the state of the industry, panelists highlighted the industry's monumental growth, both in single-case and portfolio funding, and within boutique and AmLaw 200 law firms alike. Of course, as firms become more knowledgeable, they are becoming more sophisticated. Five years ago many law firms hadn't even heard of litigation funding, whereas now they are experts; some even holding auction processes for funding, and others entertaining offers from funders as a source of leverage for settlement negotiations. In the latter example, a law firm will receive an offer from a funder with no intention of accepting. They simply approach the counterparty in the claim and ask for a higher settlement figure than what the funder is willing to invest. Clearly, the marketplace is growing more sophisticated. What's more, law firms are negotiating better fee splits on their behalf. Years ago, a funder would receive 100-150% of their investment recouped on first-money back. Today, law firms are negotiating a chunk of that first money, and even integrating success fees (usually in the 20% range) to secure their spot at the front of the line. On a CIO-specific panel, the panelists discussed their preferences for types of cases to fund. Obviously, IP topped the list, given the lengthy time-to-settlements and high upfront costs. International arbitration was also mentioned, yet most funders broaden their scope to include any commercial litigation opportunities. To keynote speaker Susman's point, panelists did point out that they prefer to get law firms on board with fee sharing, via 50/50 splits, yet they noted how some law firms simply aren't comfortable with risk. Therefore, if a case is right, the funder will cover 100% of fees if necessary. When asked about the biggest threats to funding, panelists agreed that all of the overly optimistic or naïve capital coming into the space could lead to some negative outcomes, like funder misbehavior which may incur negative headlines. These could then be seized upon by regulators in a bid to exert broad industry oversight. Allison Chock of Bentham IMF noted that the Chamber of Commerce is now approaching state legislatures, and none of them know what litigation finance is or how it works.  So they are ramming through legislation with people who don’t understand the industry. This is a cause for concern. And to the point of 'dumb money' in the space, Chock illustrated an example of how an influx of capital into a growing sector can lead to extremely bad decision-making. She told of receiving an email from a claimant in a case they had looked at that another funder had heard that Bentham was interested, so they simply threw money at the claimant. Chock's firm signed an NDA, but that didn't mean they were interested. They simply wanted to diligence the claim. Chock noted how this was the third such instance she heard about, where another funder jumped into a claim simply because her firm had been looking at it. “A fool and his money are soon parted," warned Chock. A Case Study Perhaps the most interesting panel of the day centered around a case study of how litigation finance literally saved a business' life. Business Logic (BL) had a trade secrets misappropriation and breach of contract claim against a subsidiary of Morningstar. At the time, BL was a 20-person firm with annual revenue of $4MM. All of its margin and savings were tied up in the litigation. The case had been in the works for a few years, and BL was so confident in their claim they committed much time and money to fighting it. Yet they reached a breaking point. The company was going to have to reduce its workforce to continue the claim, unless it found outside financing. They reached out to a trio of funders, and Lake Whillans responded. The funder provided fee coverage and even working capital to BL. Now, as the trial approached, law firm Yetter Coleman could find top experts and formulate a robust case. Suddenly, Morningstar got nervous. No longer could they threaten the small Business Logic by bleeding them dry pre-trial. The trial was approaching, and BL had a strong case, and was well-capitalized. The damages claim was for $65MM, and Morningstar was so concerned about a multiple of that number being rewarded, they settled for nearly the full value of the claim - $61MM. It was the 9th largest trade secrets settlement at the time, and to this day remains the largest in the state of Illinois. BL has since grown its business to 150 employees, and changed its name to NextCapital. The story illustrates the quintessential David v. Goliath dynamic that litigation funding facilitates, and highlights how funding can not only save a company from going under, but help it thrive well into the future. Final Thoughts Given the packed house, it's safe to say there will likely be a third annual conference next year. The growing popularity of conferences like LF Dealmakers underscores the mainstream acceptance of litigation finance. I personally noticed the diversity of attendees at this conference compared to the initial installment. There were more lawyers, in-house counsel and academics this time around, and I expect that will continue into next year and beyond.
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Legalist Lands $100MM Fundraise

By John Freund |
Legalist, the San Francisco-based AI-driven litigation funding platform, has landed a $100MM funding round. The firm will deploy the capital into 100-200 cases of at most $1MM each. As reported in TechCrunch, Legalist was founded in 2016 by a pair of 20-something Harvard dropouts, Eva Shang and Christian Haigh. The firm graduated from the prestigious Y Combinator school, and received financing from Peter Thiel, as part of its $10.2MM initial funding round. Legalist is an AI-driven funding platform that uses machine learning to source and diligence claims. The firm claims to have funded 38 cases thus far, of which half have resolved. 80% of those were successful. Because of the firm's leverage of AI, they are able to keep costs low and therefore fund smaller cases that much larger funders tend to eschew (Despite its reliance on AI, Legalst is an 11-person firm). The latest fundraise was sourced from non-profit endowments, family offices, and institutional investors, including an insurance company. Legalist is organized like a traditional private equity fund, with management fees and a carry structure. The total life of the fund is five years, but Shang expects to deploy all capital within two years, over 100-200 claims.

Validity Finance Adds Experienced Dispute Funder Ronit Cohen to Investment Team, Secures Additional $50 Million in Capital Commitments

By John Freund |
NEW YORK (September 18, 2019) – Litigation funder Validity Finance continues to build its U.S. investment team while expanding its capital base. The firm announced the arrival of Ronit Cohen, who joins Validity as portfolio counsel. A former trial lawyer who practiced at Simpson Thacher & Bartlett and O’Melveny, Ms. Cohen transitioned to litigation finance in 2012 and spent the past seven years as an investment professional at Bentham IMF. As dispute funding has gained acceptance in the U.S., Ms. Cohen has overseen investments in a wide span of commercial litigation matters, reviewing many hundreds of cases in the process. She’s helped clients secure funding in disputes involving breach of contract, fraud, insurance coverage disputes, patent infringement and large arbitrations. She’s also helped vet and manage investments in portfolios of cases for law firms. In coming to Validity, Ms. Cohen reunites with firm founder and CEO Ralph Sutton, who formerly was chief investment officer at Bentham and originally recruited Ms. Cohen. She is the third former Bentham manager to join Validity this year, following the arrivals of David Kerstein and Julia Gewolb. Mr. Kerstein now serves as Validity’s Chief Risk Officer; Ms. Gewolb is Director of Underwriting. Added to the firm’s other senior staff, Validity has built a team with the most tenured investment professionals focused on disputes in the U.S. “We could not be happier having Ronit join us and round out the team,” Mr. Sutton said. “She was one of our first hires out of Big Law at Bentham and her industry experience is almost unrivaled. Ronit conducted due diligence on hundreds of prospective cases and assisted in bringing dozens to strong conclusions. Her experience will be a great benefit to our current and growing roster of funding clients.” Validity launched in June 2018 with $250 million in committed capital and the backing of leading private equity investor TowerBrook Capital. The firm recently raised another $50 million in commitments from additional investors and has committed more than $50 million in its first year of operations to clients across a range of litigation matters and jurisdictions. The firm recently partnered with American Lawyer Media to survey 330 lawyers at law firms and businesses about their experience with litigation finance. Just under 100% of those surveyed who have used third-party funding said they planned to do so again. And 98% of respondents said that trusted relationships are the most important factor in choosing a funder. “It’s a great pleasure to be working again with Ralph, Dave Kerstein and Julia Gewolb, and to connect with the superb professionals that Validity has assembled in the past year,” Ms. Cohen said. “The firm has created a unique market position with its focus on client-centric service. Fortunately, there is zero learning curve for me in getting started and I’m excited to be part of a team dedicated to innovative dispute funding on a national scale.”

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About Validity: Validity is a commercial litigation finance company that provides businesses, law firms and individuals with non-recourse financing for a wide variety of commercial disputes. Founded in 2018 with $250 million in financing, Validity believes that capital and legal expertise combine to help solve legal problems on behalf of clients. Validity’s’ mission is to make a meaningful difference for clients by focusing on fairness, ethics, innovation, and clarity.  For more, visit www.validity-finance.com.

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Balance REV to Fund $1B Class Action Against IAG

By John Freund |
Insurance Australia Group (IAG) is estimating that a class action being waged against it could be worth as much as $1B. Global funder Balance REV is financing the claim, which alleges that customers were sold 'add-on' insurance products that had little-to-no financial value. As reported in The Sydney Morning Herald, the Hayne Royal Commission recently conducted an investigation into IAG subsidiary Swann. That investigation uncovered 850,000 policies sold to customers for over $1B. Fewer than 10% of the customers who received those policies ever filed a claim. IAG has halted sales of the policy, and initiated a remediation program. Estimates are that hundreds of thousands of customers make up the claimant pool, which is operating under a common fund order agreement. That means that all claimants must pay a percentage of their payout to the litigation funder - in this case, Balance REV - regardless of whether they signed an agreement with the funder. That percentage has been capped at 25%. IAG moved to have Balance REV's fee changed to a 3x multiple of invested capital, given that the 25% figure could yield the funder as much as $250MM. But Justice Gleason found that the funder will be "appropriately and reasonably remunerated," without receiving a windfall. He noted that the upfront costs to this large claim are considerable. The trial is listed for July 2020, with a mediation scheduled for this November.

Augusta raises additional $115m for litigation and dispute funding

By John Freund |

London, 12th September 2019. Augusta, the UK’s largest litigation and disputes funder by case volume today announces it has raised a further US $115m from a multi-billion-dollar US-based investment manager.

In 2018, Augusta secured £150m from a global investment fund, to finance business growth and investment in funding cases. In response to increasing demand from lawyers, this additional capital raising will boost Augusta’s existing capacity for dispute and litigation investments in markets including the UK, Europe, Middle-East, Australia, Canada and the US.

Augusta has recently announced £25m firm-wide case funding deals with international law firm Pinsent Masons and leading litigation law firm HFW. This additional investment increases capacity for the funding of individual cases, as well as the working capital requirements of law firms and firm-wide case facilities.

Of particular note is the innovative structure of this new capital. This facility will be used on a ‘co-investment’ basis - allowing both existing and new investors to participate in cases funded, across the full range of size and geography that Augusta supports. This provides both investors with the opportunity to gain exposure to Augusta’s growing case pipeline.

Louis Young, Managing Director at Augusta, said: “With the increase in demand from lawyers for our support, we are delighted to have added additional capacity to our business. Both our existing and new investors are keen to promote access to justice and appreciative of the returns Augusta’s model provides. This development is a strong endorsement of the litigation funding industry and in particular, our market-leading experienced team”.

Augusta has recently announced hirings into its senior team with the arrival of Proskauer Director Polly Bahl as Chief Operating Officer, Gowling WLG Partner James Foster as Head of International Arbitration and FTI Consulting Managing Director Leor Franks as Chief Marketing Officer. These additions reflect Augusta’s ongoing growth and increasing client demand for dispute and litigation funding.

About Augusta:

- Established in 2013, Augusta is the largest litigation and dispute funding institution in the UK by # cases with a team of 70 in London and 85 worldwide. Augusta’s scale enables us to make decisions in market-leading timeframes and fund cases of any size. - Augusta is organised into a series of specialist practice groups: Arbitration, Class Action, Competition, Consumer, Intellectual Property and Litigation, and sectors including Financial Services and Construction & Energy. - By the end of H12019, Augusta had funded 213 claims with a market-leading win ratio of over 80%. - Augusta has offices in London, Sydney, Melbourne and Toronto. - #litigation #legalservices #investment #privateequity

Media Contact: Leor Franks, Chief Marketing Officer. leor.franks@augustaventures.com +44 (0)20 3510 2100 Augusta Ventures, The Peak, 5 Wilton Road,  London, SW1V 1AN, United Kingdom. www.augustaventures.com

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ROSEN, A NATIONALLY RANKED LAW FIRM, Reminds Burford Capital Limited Investors of Important Deadline in Securities Class Action First Filed by the Firm; Encourages Investors with Losses over $100K to Contact the Firm – BRFRF, BRFRY

By John Freund |

NEW YORK, Sept. 10, 2019 (GLOBE NEWSWIRE) -- Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Burford Capital Limited (OTC: BRFRF, BRFRY) from March 18, 2015 through August 7, 2019, inclusive (the “Class Period”) of the important October 21, 2019 lead plaintiff deadline in the securities class action commenced by the firm. The lawsuit seeks to recover damages for Burford investors under the federal securities laws.

To join the Burford class action, go to http://www.rosenlegal.com/cases-register-1647.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. AN INVESTOR’S ABILITY TO SHARE IN ANY POTENTIAL FUTURE RECOVERY IS NOT DEPENDENT UPON SERVING AS LEAD PLAINTIFF.

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Burford has been manipulating its metrics, including ROIC and IRR, to create a misleading picture of investment returns to investors; (2) these manipulations hid the fact that the Company is at high risk for a liquidity crunch and is already arguably insolvent; and (3) as a result of the aforementioned misconduct, Defendants’ statements about Burford’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than October 21, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, go to http://www.rosenlegal.com/cases-register-1647.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of Rosen Law Firm toll free at 866-767-3653 or via e-mail at pkim@rosenlegal.com or cases@rosenlegal.com.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.

Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors. Attorney advertising. Prior results do not guarantee a similar outcome.

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Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 34th Floor New York, NY  10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 lrosen@rosenlegal.com pkim@rosenlegal.com cases@rosenlegal.com www.rosenlegal.com

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Burford Accused of Lavishing Non-Executive Directors With Trips to Barbados and Capetown

By John Freund |
The hits just keep on coming for Burford Capital. First there was the Muddy Waters short, then accusations of a sex tape swap, and now allegations the world's largest litigation funder spent loads of money on its four non-executive directors (whose responsibility is to keep management in check). As reported in The Evening Standard, one of Muddy Waters' principal arguments against Burford was concerns over governance. Burford subsequently demoted CFO Elizabeth O'Connell to CSO. O'Connell is married to Burford CEO Christopher Bogart. The firm also made several other governance adjustments in order to assuage investor anxiety. But the latest revelations speak to that very governance culture. Burford is being criticized for holding board meetings in luxury locations like Barbados, Cape Town and the Four Seasons Mexico City. The funder is said to have invited its four non-executive directors on all-expenses paid jaunts, including expensive food, travel and lodging for them and their wives. Directors stayed upwards of two weeks at certain spots. And while it is standard for a board meeting's travel and lodging expenses to be covered by the company, typically they are held in the city where the company is headquartered or has a strong presence. Burford is a London-based company with offices in major cities around the globe. But those major cities don't include Barbados, Cape Town or Mexico City. A whistleblowing employee claims that the trips were designed to appeal to the non-executives, and reduce the likelihood of their speaking out against the company. Burford is countering that spending extended time with the directors allowed CEO Bogart to maximize the benefits of their expertise. Both Burford and the non-executives insist they remained critical of the firm and asked many substantial questions on the trips. Burford further claimed that as a Guernsey-based company, it cannot hold board meetings in London or New York for tax reasons. Additionally, the firm claims it has been eyeing potential business in Cape Town, Mumbai and Germany, where it held some of its jaunts.

Bentham IMF Completes Third Round of US Hiring Since Launch of $500M Fund Devoted to US Investments, Bringing on Talent to Address Funding Demand for Trade Secrets and International Arbitration Disputes

By John Freund |

NEW YORK (September 11, 2019) – Leading commercial litigation funder Bentham IMF has completed its third round of hiring since the November 2018 launch of its second fund devoted to US investments.

Stephanie Southwick, Managing Partner of Greenfield Southwick LLP, a boutique business and intellectual property litigation firm, has joined the company as an Investment Manager and Legal Counsel, adding strength to the team of former Latham & Watkins attorneys in its San Francisco office. Nilufar Hossain, Acting General Counsel at Prakti who previously practiced international arbitration and commercial litigation at King & Spalding LLP and Freshfields Bruckhaus Deringer LLP, has joined Bentham as Legal Counsel in its New York City office.

The hires reinforce the company’s established expertise in evaluating cases in areas of practice where demand for funding is high. Intellectual property claimants have long sought support from Bentham due to the high cost of pursuing such cases and the protracted time they can take to resolve. The rapid rise in trade secrets litigation brought about by the passage of the Defend Trade Secrets Act, combined with a strong job market spurring trade secret theft, has prompted increased demand specific to trade secrets funding. Ms. Southwick meets the needs of parties bringing those disputes in several ways. In her sixteen plus years as a litigator, she has won numerous verdicts and dispositive motions and secured favorable settlement outcomes for her clients. And she has worked with the types of companies most commonly bringing trade secret claims—start-ups, tech companies and manufacturers. She also has represented VCs, real estate developers, family offices, directors and officers and professional partnerships. Her experience also extends to litigating business torts, contract disputes, founder disputes, and employment matters.

“Adding a well-respected expert in trade secrets such as Stephanie Southwick sets Bentham apart,” said Allison Chock, Bentham’s US Chief Investment Officer. “We enhanced our IP funding strengths earlier this year when we hired Kirkland & Ellis LLP partner Sarah Tsou to oversee our US patent funding. Ms. Southwick’s arrival broadens our capabilities such that we can now serve as a one-stop shop for all types of IP funding.” 

Arbitration disputes give rise to similar issues that prompt the need for funding. With 14 offices around the world and leading international arbitration practitioners including Dana MacGrath (former Sidley Austin LLP partner and current ArbitralWomen President) on its team, Bentham has the capacity—and the capital strength—to provide solutions for international arbitrations arising across the globe. Nilufar’s experience representing US and foreign clients in cross-border litigations, investigations and arbitrations concerning energy, oil & gas, mining and natural resources, pharmaceuticals, technology, and construction disputes adds to the expertise Bentham brings to bear in vetting such disputes.

The hires also help Bentham mirror the legal department and executive teams of the companies it funds. “Gender and ethnic diversity haven’t driven our hiring strategy, but they are factors we consider as we strive to be the trusted resource that companies around the world can look to for strategic financing solutions,” said Allison Chock. The company’s eleven-person senior investment management team in the US, which is comprised solely of lawyers in business-generating roles comparable to equity partner roles at law firms, now has more women than men—a rarity in the fields of law and finance.

The team’s newest hires are highly qualified in their respective fields and have demonstrated a commitment to service throughout their careers. Stephanie served as Arts Commissioner for the City of San Jose and a member of the Board of Trustees for the Silicon Valley Ballet (Ballet San Jose), where she has previously served as pro bono legal counsel. She earned her JD, with honors, from The George Washington University Law School where she was a member of the George Washington International Law Review. She studied International Human Rights Law at The University of Oxford and The George Washington University, and she earned her BA in International Political Economy from the University of Washington.

Nilufar previously served on the board of directors for The Synergos Institute, a non-profit engaged in international public-private partnership projects. She received her JD from New York University School of Law, her MA from Middlebury College and her BA from Harvard University, where she graduated magna cum laude.

ABOUT BENTHAM IMF

Bentham IMF is the US arm of publicly listed IMF Bentham Limited (ASX: IMF), one of the most successful litigation funding companies in the world, and one of only two Chambers and Partners “Band One” litigation funding companies in the US, with a portfolio that has a total claim’s estimated recoverable amount of $5.6 billion AUD. Together, our companies have 14 offices throughout the US, UK, Australia, Canada and Asia and provide funding to clients in jurisdictions including the US, UK, Europe, Australia, Canada, New Zealand, Hong Kong and Singapore. We have reviewed thousands of commercial cases in the past 18 years, funding to completion 192 cases and generating $2.4 billion AUD in recoveries. We have achieved an 89% success rate, with clients utilizing our funding retaining an average of 63% of all case proceeds.

For further information regarding Bentham IMF and its activities, please visit www.benthamimf.com.

DISCLAIMER

Nothing herein should be construed as an offer to buy or sell, nor a solicitation of an offer to buy or sell, any security or other financial instrument, or to invest assets in any account managed or advised by Bentham IMF or its affiliates.

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Burford Investor Caro-Kann Issues Point-by-Point Rebuttal of Muddy Waters Allegations

By John Freund |
Well, not everyone is buying Muddy Waters' claims that Burford Capital mis-represented its accounting. Investor Caro-Kann Capital is long Burford shares, and has released a lengthy and detailed report outlining the firm's point-by-point rebuttal of Muddy Waters' allegations. In Caro-Kann's report, the investor likens Muddy Waters' attack on Burford to trying to find 'a black cat in a dark room.' Essentially, they're searching for something that is extremely difficult to find, especially if it's not there at all. While the 50+ page report lays out a host of arguments, we'll focus on the major ones here. In the Napo Pharmaceuticals claim, Muddy Waters alleges that Burford accounted income that didn't materialize, then concocted a scheme with its largest investor - Invesco - to raise funds through a subsidiary to capitalize Napo so it could pay back Burford. Caro-Kann say this accusation was meant to be "a Mike Tyson uppercut," but in fact amounts to "a phantom punch." Caro-Kann concludes that Burford's accounting of the Napo claim was actually conservative. They note that Burford accounted the claim at $15.75MM in 2013, when the entitlement became unconditional. Legally, Burford could have accounted the claim at $30MM. Additionally, by the end of 2015, Burford had not yet accounted for any accrued interest on the claim (interest was accruing at 18%). And at the end of 2016, Burford accounted for Napo at $21.3MM, when legally it could have done so for $51.1MM. So according to Caro-Kann, Burford management was actually being conservative in its valuation of the claim. Clearly management was not certain about collectability, so they were extra cautious here. This shows "thoughtfulness and conservatism, as opposed to aggressiveness to impress investors with returns as implied by Muddy Waters." Caro-Kann also notes how Muddy Waters pointed out that Burford affiliate Nantucket, which was the proxy for owning shares in the Napo subsidiary Jaguar Health, listed its headquarters at the same address as Burford shareholder Invesco. The implication here is that the “cozy address sharing” led to Burford and Invesco colluding to capitalize Napo, so Burford could recover. According to Caro-Kann, the shared address was actually a result of clerical error, as evidenced by prior and subsequent filings. So this turns out to be much ado about nothing (also let's not forget, we do have this thing called the internet... so the idea that Burford and Invesco have to share an office to collude is kind of outdated. Clearly Muddy Waters was just trying to-- ahem-- muddy the waters with this part of the accusation).  Caro-Kann also targets Muddy Waters' allegation that Burford misreports its IRR. Citing the Desert Ridge case, Caro-Kann notes that while Burford did sacrifice 4% of IRR on the deal, it did so in order to increase eventual profit on the deal by 77% (from $17.6MM to $31.1MM). ROIC subsequently increased from 254% to 448%. Muddy Waters omitted these stats from its IRR analysis, which Caro-Kann finds misleading. "We bet that every hedge fund manager out there would take such an IRR reduction in order to gain a higher ROIC," the report says. There are other -- many, many other -- points made by Caro-Kann in their report. One example is how Muddy Waters claims that Burford delayed recognizing a trial loss for several years (the Progas case). Yet Caro-Kann found that Burford did the same with Teinver - which was a huge win for the funder. So in reality, the funder was applying a consistent reporting method to its wins and losses. Caro-Kann finishes their report by declaring their "tremendous respect" for short-sellers who expose corporate malfeasance. While they consider Carson Block and Muddy Waters to be among the best short-sellers, they profoundly disagree with Block's findings as relates to Burford Capital. "Muddy Waters’ prior track record does not mean that they are always right," read the report. "Burford is one such example. We believe Muddy Waters is mistaken in their conclusions about Burford Capital’s reporting and accounting practices, as well as its financial position." Caro-Kann labels itself "arguably the most publicly recognizable long investor in Burford," having published a long thesis in December 2018. Now this rebuttal will add to their public profile. It will be interesting to see how Block - who has been anything but shy when it comes to debating his Burford claims - will respond to this lengthy and detailed report. We will continue to follow this story as it develops. Click here to read the full report.