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Case Developments Commercial

CAT Rules in Favour of BT in Harbour-Funded Claim Valued at £1.3bn

By Harry Moran |

As LFJ reported yesterday, funders and law firms alike are looking to the Competition Appeal Tribunal (CAT) as one of the most influential factors for the future of the UK litigation market in 2025 and beyond. A judgment released by the CAT yesterday that found in favour of Britain’s largest telecommunications business may provide a warning to industry leaders of the uncertainty around funding these high value collective proceedings.

An article in The Global Legal Post provides an overview of the judgment handed down by the CAT in Justin Le Patourel v BT Group PLC, as the Tribunal dismissed the claim against the telecoms company following the trial in March of this year. The opt-out claim valued at around £1.3 billion, was first brought before the Tribunal in 2021 and sought compensation for BT customers who had allegedly been overcharged for landline services from October 2015.

In the executive summary of the judgment, the CAT found “that just because a price is excessive does not mean that it was also unfair”, with the Tribunal concluding that “there was no abuse of dominant position” by BT.

The proceedings which were led by class representative Justin Le Patourel, founder of Collective Action on Land Lines (CALL), were financed with Harbour Litigation Funding. When the application for a Collective Proceedings Order (CPO) was granted in 2021, Harbour highlighted the claim as having originally been worth up to £600 million with the potential for customers to receive up to £500 if the case had been successful.

In a statement, Le Patourel said that he was “disappointed that it [the CAT] did not agree that these prices were unfair”, but said that they would now consider “whether the next step will be an appeal to the Court of Appeal to challenge this verdict”. The claimants have been represented by Mishcon de Reya in the case.

Commenting on the impact of the judgment, Tim West, disputes partner at Ashurst, said that it could have a “dampening effect, at least in the short term, on the availability of capital to fund the more novel or unusual claims in the CAT moving forward”. Similarly, Mohsin Patel, director and co-founder of Factor Risk Management, described the outcome as “a bitter pill to swallow” for both the claimants and for the law firm and funder who backed the case.

The CAT’s full judgment and executive summary can be accessed on the Tribunal’s website.

Commercial Fundraising

Sandfield Capital Secures £600m Facility to Expand Funding Operations

By Harry Moran |

Sandfield Capital, a Liverpool-based litigation funder, has reached an agreement for a £600 million facility with Perspective Investments. The investment, which is conditional on the identification of suitable claims that can be funded, has been secured to allow Sandfield Capital to strategically expand its operations and the number of claims it can fund. 

An article in Insider Media covers the the fourth capital raise in the last 12 months for Sandfield Capital, with LFJ having previously covered the most recent £10.5 million funding facility that was secured last month. Since its founding in 2020, Sandfield Capital has already expanded from its original office in Liverpool with a footprint established in London as well. 

Steven D'Ambrosio, chief executive of Sandfield Capital, celebrated the announced by saying:  “This new facility presents significant opportunities for Sandfield and is testament to our business model. Key to our strategy to deploy the facility is expanding our legal panel. There's no shortage of quality law firms specialising in this area and we are keen to develop further strong and symbiotic relationships. Perspective Investments see considerable opportunities and bring a wealth of experience in institutional investment with a strong track record.”

Arno Kitts, founder and chief investment officer of Perspective Investments, also provided the following statement:  “Sandfield Capital's business model includes a bespoke lending platform with the ability to integrate seamlessly with law firms' systems to ensure compliance with regulatory and underwriting standards.  This technology enables claims to be processed rapidly whilst all loans are fully insured so that if a claim is unsuccessful, the individual claimant has nothing to pay. This is an excellent investment proposition for Perspective Investments and we are looking forward to working with the management team who have a track record of continuously evolving the business to meet growing client needs.”

Announcements Case Developments Commercial

Australian Google Ad Tech Class Action Commenced on Behalf of Publishers

By Harry Moran |

A class action was filed on 16 December 2024 on behalf of QNews Pty Ltd and Sydney Times Media Pty Ltd against Google LLC, Google Pte Ltd and Google Australia Pty Ltd (Google). 

The class action has been commenced to recover compensation for Australian-domiciled website and app publishers who have suffered financial losses as a result of Google’s misuse of market power in the advertising technology sector. The alleged loss is that publishers would have had significantly higher revenues from selling advertising space, and would have kept greater profits, if not for Google’s misuse of market power. 

The class action is being prosecuted by Piper Alderman with funding from Woodsford, which means affected publishers will not pay costs to participate in this class action, nor will they have any financial risk in relation to Google’s costs. 

Anyone, or any business, who has owned a website or app and sold advertising space using Google’s ad tech tools can join the action as a group member by registering their details at www.googleadtechaction.com.au. Participation in the action as a group member will be confidential so Google will not become aware of the identity of group members. 

The class action is on behalf of all publishers who had websites or apps and sold advertising space using Google’s platforms targeted at Australian consumers, including: 

  1. Google Ad Manager (GAM);
  2. Doubleclick for Publishers (DFP);
  3. Google Ad Exchange (AdX); and
  4. Google AdSense or AdMob. 

for the period 16 December 2018 to 16 December 2024. 

Google’s conduct 

Google’s conduct in the ad tech market is under scrutiny in various jurisdictions around the world. In June 2021, the French competition authority concluded that Google had abused its dominant position in the ad tech market. Google did not contest the decision, accepted a fine of €220m and agreed to change its conduct. The UK Competition and Markets Authority, the European Commission, the US Department of Justice and the Canadian Competition Bureau have also commenced investigations into, or legal proceedings regarding, Google’s conduct in ad tech. There are also class actions being prosecuted against Google for its practices in the ad tech market in the UK, EU and Canada. 

In Australia, Google’s substantial market power and conduct has been the subject of regulatory investigation and scrutiny by the Australian Competition and Consumer Commission (ACCC) which released its report in August 2021. The ACCC found that “Google is the largest supplier of ad tech services across the entire ad tech supply chain: no other provider has the scale or reach across the ad tech supply chain that Google does.” It concluded that “Google’s vertical integration and dominance across the ad tech supply chain, and in related services, have allowed it to engage in leveraging and self-preferencing conduct, which has likely interfered with the competitive process". 

Quotes 

Greg Whyte, a partner at Piper Alderman, said: 

“This class action is of major importance to publishers, who have suffered as a result of Google’s practices in the ad tech monopoly that it has secured. As is the case in several other 2. jurisdictions around the world, Google will be required to respond to and defend its monopolistic practices which significantly affect competition in the Australian publishing market”. 

Charlie Morris, Chief Investment Officer at Woodsford said: “This class action follows numerous other class actions against Google in other jurisdictions regarding its infringement of competition laws in relation to AdTech. This action aims to hold Google to account for its misuse of market power and compensate website and app publishers for the consequences of Google’s misconduct. Working closely with economists, we have determined that Australian website and app publishers have been earning significantly less revenue and profits from advertising than they should have. We aim to right this wrong.” 

Class Action representation 

The team prosecuting the ad tech class action comprises: 

  • Law firm: Piper Alderman
  • Funder: Woodsford
  • Counsel team: Nicholas de Young KC, Simon Snow and Nicholas Walter
Announcements Consumer

Rockpoint Legal Funding Shines at Consumer Attorneys of California Annual Convention

By Harry Moran |

Rockpoint Legal Funding proudly participated in the annual conference hosted by the Consumer Attorneys of California (CAOC), showcasing its commitment to supporting legal professionals and their clients. As the only funding company endorsed by CAOC, Rockpoint Legal Funding leveraged this premier event to connect with new and prospective partners reinforcing its position as a trusted funder within California's legal community.

The CAOC is a prestigious network of attorneys dedicated to protecting the rights of California consumers. Each year, the organization hosts its annual convention, bringing together some of the brightest legal minds and innovators in the industry. For Rockpoint Legal Funding, this event was an invaluable opportunity to demonstrate its unwavering dedication to empowering attorneys and their clients through tailored legal funding solutions.

During the convention, Rockpoint operated a booth where team members engaged with attendees, offering insights into the company's services and how they benefit both legal professionals and consumers seeking justice. From new attorneys looking for funding solutions to established firms aiming to streamline their case workflows, Rockpoint provided personalized advice and showcased its comprehensive suite of legal funding options.

"Rockpoint is proud to partner with the Consumer Attorneys of California. We take a lot of pride in serving the attorneys and their clients of this prestigious organization," said Ramtin Ghaneeian, Founding Partner of Rockpoint Legal Funding. His statement highlights the company's commitment to strengthening its collaboration with CAOC and continuing to support its mission of safeguarding the rights of California consumers.

President of Rockpoint Legal Funding, Maz Ghorban, emphasized the value of building strong relationships at events like this, stating, "It's a privilege to connect with our law firm partners at the CAOC convention each year while ensuring our values align with protecting California consumers through legal recourse."

Rockpoint's presence at the CAOC annual convention underscores its dedication to fostering meaningful connections within the legal community. By being the only CAOC-endorsed funding company, Rockpoint reinforces its credibility and reliability in the legal funding landscape. This endorsement is a testament to Rockpoint's shared vision with CAOC in championing consumer rights and providing critical support to those navigating the justice system.

For attorneys and law firms, Rockpoint Legal Funding offers a variety of non-recourse funding solutions, ensuring clients have the financial support they need during ongoing litigation. This commitment aligns perfectly with CAOC's mission to advocate for justice and fairness for California consumers.

As Rockpoint continues to deepen its relationships with legal professionals, events like the CAOC annual convention remain a cornerstone of its outreach efforts. The company looks forward to future collaborations and furthering its impact within the legal community.

For more information about Rockpoint Legal Funding and its services, visit Rockpointlegalfunding.com or call (855) 582-9200.

About Rockpoint Legal Funding

Rockpoint Legal Funding is a leading provider of non-recourse legal funding solutions, serving attorneys and their clients with unparalleled expertise and care. With a mission to empower justice and support favorable case outcomes, Rockpoint is committed to providing financial assistance during critical times, ensuring no one is denied access to legal recourse due to financial constraints.

Commercial Deals

Ares Management Enters Agreement with Omni Bridgeway for 150+ Ongoing Investments

By Harry Moran |

Omni Bridgeway has entered into an agreement with Ares Management Corporation, for the alternative investment manager to acquire a stake over 150 of Omni Bridgeway’s ongoing investments. The agreement will see the creation of ‘Fund 9’ as a continuation fund to contain these investments, with Ares investing A$310 million for a 70% interest in the fund whilst Omni Bridgeway will retain a 30% interest.

An article in Bloomberg Law covers the news that “Ares has the option to acquire up to a A$35m equity stake in Omni Bridgeway through the issuance of warrants at an agreed strike price.”

Raymond van Hulst, Managing Director and CEO of Omni Bridgeway stated: “I am very pleased with this transaction as it delivers on all of our stated strategic objectives at once: validating the fair value of our book and the quality of our underwriting and valuation methodologies, improving the cost coverage rate, reducing debt to zero, and enforcing our position as the leading and institutional grade funds management platform for legal assets.”

Jan-Paul Kobarg, Partner at Ares Management added: “Leveraging our scale, structuring capabilities and flexible capital base, we are pleased to invest alongside OBL in this innovative structure for the asset class. During our due diligence process, we were impressed with the experience and quality of the OBL team. We believe this transaction accelerates OBL’s transition to a capital light funds management model in a growing asset class where it is a recognised global leader.”

More detail about the agreement between Omni Bridgeway and Ares can be found in the full announcement.

Commercial Deals

Pathways to Improve Alignment Between Funders and Claimants in Funding Structures

By Harry Moran |

Omni Bridgeway’s Gian Kull and Simon Latham explore the topic of ‘funding structures in opt-out CAT proceedings’, identifying key methods to improve alignment between litigation funders and claimants whilst ensuring a sustainable future for UK litigation funding.

In their LinkedIn post, Kull and Latham frame their analysis by stating that an optimal funding structure is one that “must balance the interests of funders, legal representatives and claimants, as well as consider the perspectives of defendants such that settlement is not impeded or overcomplicated.” 

The article lays out the following three options that funders could explore to improve this alignment:

  1. The Case for Funders Charging a Percentage of Damages
  2. Introducing Damages-Based Agreements in the CAT
  3. Making Invested Capital and Contingent ATE Premia Recoverable from Defendants

Kull and Latham explain not only the differing advantages of each of these options, but also suggest areas where safeguards or additional requirements could be introduced to ensure efficiency and protect claimants. With these options detailed, the authors conclude that a “hybrid approach, combining capped percentage-based funding with DBAs for legal fees and third-party funding for ancillary costs, alongside the recovery of invested capital and contingent premia from defendants, may offer the most balanced solution.”

The full analysis from Kull and Latham can be read here.

Commercial Regulatory Issues

CAT Judgments and CJC Review to Define UK Litigation Funding in 2025

By Harry Moran |

An article in CDR looks ahead to the UK litigation landscape in 2025, speaking with funders, litigators and barristers to see what these industry insiders view as the most likely trends for the upcoming calendar year. When it comes to funding, the issues highlighted were the Competition Appeal Tribunal (CAT), the funding of group actions and the highly-anticipated Civil Justice Council (CJC) review into third-party funding which is expected to be completed in the summer of next year.

Gian Kull, investment manager at Omni Bridgeway, noted the headwinds around the “availability of capital in the UK has reduced because several funders have stopped funding new cases.” He also explained that the ongoing impact of the Supreme Court’s PACCAR decision is that funding has become more expensive, due to the required “change of pricing structures”. Moving forward, Kull emphasised that the most important thing was to gain “clarity from the CAT” through judgments handed down next year, which he suggests will “confirm whether it is a fundable pathway”. 

Sarina Williams, partner at Linklaters, described the CJC review as “the single biggest driver of how class actions develop in the UK”, with the CJC’s recommendations set to shape the government’s legislative approach to the PACCAR issue. Williams argues that if funders get their way and the CJC “says that self-regulation is working well”, then it is likely that the UK will continue to be “an attractive jurisdiction for funders.”

Announcements Commercial Fundraising

Nera Capital Secures Additional $25 million in New Funding Deal

By Harry Moran |

Top litigation finance firm Nera Capital is ending the year on a high with the announcement of yet another successfully closed funding deal, this time securing $25 million to bolster UK consumer protection claims.

The funding, secured through a US-based investment partner, reflects yet another significant milestone for the firm as it continues to build momentum and strengthen its foothold in the market. 

This recently closed funding deal builds on a prosperous year of growth for Nera Capital, further demonstrating its capabilities across the globe. The investment will be directed towards advancing claims that protect UK consumers, enabling greater access to justice for individuals seeking redress.

With offices in Dublin, Manchester, and Amsterdam, Nera Capital has consistently demonstrated its commitment to driving innovation and impact in litigation finance worldwide. This latest funding announcement underscores Nera Capital’s ability to forge strategic international partnerships that deliver meaningful results. 

In 2024, Nera have hit record numbers of settlements, deployment and company profitability but also grown major portfolio positions in Europe and the USA.

Aisling Byrne, Director at Nera Capital, commented on the announcement: “We are happy to have closed yet another significant funding deal, further cementing our position as a leading force in consumer protection litigation. We anticipate this initial facility figure will increase as our partnership strengthens and thrives over time.

She added: “This is not just about financial growth; it’s about expanding our ability to make a difference. With this funding, we are reinforcing our commitment to fairness and justice, empowering consumers, and holding organisations accountable.”

The announcement follows the recent launch of Nera Capital’s £250,000 Access to Justice Fund, aimed at providing legal and financial support to those who may otherwise face barriers to justice.

The firm’s efforts come at a time of heightened focus on consumer rights across the world, driven by evolving legal frameworks, increased attention to data privacy, and growing concerns about sustainability and corporate accountability.

“This funding is another step forward in a year of tremendous progress for Nera Capital,” Aisling continued.

“As we look to 2025, we remain committed to leveraging our resources and expertise to protect consumers and advocate for justice on both sides of the Atlantic.“ 

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 Holland. 

·       Member of European Litigation Funders Association

.     www.neracapital.com

Announcements Commercial People Moves

Delta Capital Partners Welcomes Accomplished Professionals to C-Suite

By Harry Moran |

Delta Capital Partners Management, an SEC registered investment adviser specializing in litigation and legal finance, is pleased to announce as additions to the firm Jason Searfoss as Chief Financial Officer, Elinoar Sofer as Chief Operations Officer, and Michael Ouliel as Chief Intelligence Officer. 

Mr. Searfoss will be responsible for Delta’s finance, accounting, and administrative functions and will oversee all capital market activities, tax and valuation matters. Ms. Sofer will oversee the day-to-day operations and management of Delta, while Mr. Ouliel will assist with business intelligence activities in the firm’s management and monitoring of the cases in its portfolio or under consideration for investment.

Mr. Searfoss, an advisor to numerous startup and growth-stage technology companies, is a Cofounder of and served as Chief Financial Officer and Chief Investment Officer of Boomtown, a leading technology startup accelerator with more than 200 portfolio companies. A veteran of the litigation finance industry, Mr. Searfoss was also the founding Chief Financial Officer, a General Partner, and member of the Investment Committee of Longford Capital, a leading litigation funder. “I have known and worked closely with Chris DeLise and the Delta team for well over a decade and I am excited about the future of the organization. Litigation finance is an attractive and evolving asset class, and Delta’s strengths stand out in the industry,” said Searfoss.

Prior to joining Delta, Ms. Sofer previously served as the Chief Operating Officer of BlackSwan Technologies, a leading global technology AI startup. In this capacity, she scaled the company across six subsidiaries within the US, EMEA and Asia and successfully raised capital and secured valuable commercial partnerships with leading Fintech companies. “I am thrilled to be joining the very talented team at Delta and I am looking forward to collaborating with Chris DeLise and the senior team in building on their ongoing success and executing Delta’s ambitious growth plans,” said Ms. Sofer.

Before his tenure at Delta, Mr. Ouliel founded and acted as the CEO of Ripples Homeland Security Group. Ripples was a global technology company with a focus on building large and complex intelligence and investigation systems for governments and large multinational enterprises globally. Mr. Ouliel was also the founder and CEO of BlackSwan Technologies, where he was named among the Top 50 AI CEOs of 2021 by Technology Innovators magazine. In recent years, Mr. Ouliel has been acting as a special advisor to multiple governments and federal agencies in the area of technology, primarily focused on intelligence, counter terror, HUMINT, and extremism. Mr. Ouliel expressed that he is “thrilled and excited to join the excellent team at Delta” and that the opportunity presented an “outstanding value proposition and business model for which his “skills and expertise will bring unique opportunities to the litigation funding market.”

Christopher DeLise, Delta’s founder, CEO and Co-CIO stated that he is “very proud to have such esteemed professionals join Delta as it is continues its growth and development in dynamic markets and verticals. The litigation finance industry has significantly changed over the past 14 years, which necessitates bringing on board very seasoned professionals to best enable the firm to adapt and profit from these developments. I have known each of Jason, Michael and Elinoar for over a decade, frequently collaborating on one-off projects, and therefore it made great sense to have them join the Delta team on a permanent basis as we embark on our latest set of growth initiatives and new product offerings.”   

About Delta

Delta Capital Partners Management LLC is a US-based, global asset management firm specializing exclusively in litigation and legal finance, judgment and award enforcement, and asset recovery.  Delta creates bespoke financing solutions for professional service firms, businesses, governments, financial institutions, investment firms, and individual claimants to enable them to investigate claims, pursue litigation or arbitration, recover assets, enforce judgments or awards, and more effectively manage their risks, cash flow, and capital expenditures.

Case Developments Commercial

Burford Capital Funds Competition Claim Against Google

By Harry Moran |

Law firm Geradin Partners has revealed that, alongside Dr Or Brook, they will be filing an opt-out competition damages claim against Google in the Competition Appeal Tribunal (CAT). The claim, which is being brought on behalf of UK-domiciled advertisers, focuses on allegations that Google abused the market dominance of its search engine services and engaged in anticompetitive behaviour to charge unreasonably high prices for these advertisers.

Geradin Partners said that the claim is estimated to be valued at over £5 billion, with the action being supported by litigation funding from Burford Capital. Alongside Geradin Partners, Dr Brook has engaged a legal team including: Robert O’Donoghue KC (Brick Court), Kieron Beal KC (Blackstone Chambers), and Daniel Carrall-Green (Fountain Court). The announcement did not specify a date, but said that the claim would be filed in the CAT “shortly”.

Dr Brook explained the reasoning behind bringing the action, saying: “Google has adopted a deliberate strategy to maintain its dominance in online search through a range of anticompetitive behaviours aimed at excluding its rivals, to the severe detriment of advertisers. I am bringing this litigation to ensure that advertisers in the UK are given the opportunity to be compensated for the harm they have suffered at Google’s hands as a result of these unfair practices.”

Damien Geradin, Founding Partner of Geradin Partners, provided the following statement: “Google has eliminated rivals on the general search services and general search text advertising markets through a variety of exclusionary practices, which has led UK-domiciled advertisers to be overcharged by billions of pounds. We are committed and well-resourced to obtain redress on their behalf.” 

Case Developments Commercial

Omni Bridgeway Funds Class Actions Targeting Mining Companies’ Sexual Harassment

By Harry Moran |

Two class actions have been filed against BHP Group and Rio Tinto Group, over claims that their Australian mining sites created environments of sexual harassment and gender discrimination against female employees. The class actions, which were filed earlier this week in the Federal Court of Australia, allege that the female employees put at risk and also punished via demotion or dismissal when these issues were reported to the companies.

BNN Bloomberg reports that the class actions are being funded by Omni Bridgeway, with JGA Saddler providing legal representation for the claimants. The amount of funding provided by Omni Bridgeway has not been publicly reported.

Joshua Aylward, director at JGA Saddler, said that in the process of bringing these lawsuits they “have heard reports of everything from unwanted touching and sexual harassment to rape, violence and physical threats.” He went on to explain that the class actions are both about seeking justice for the victims and will also “give a voice to these women, many of whom have been too afraid to speak out for fear of losing their jobs or workplace reprisals.”

In statements from the companies targeted by the class actions, BHP said they “deeply regret and apologize unreservedly to anyone who has ever experienced any form of harassment,” whilst Rio said that it would treat these claims with “the utmost seriousness”.

Case Developments Commercial

Sarama Resources Commences Arbitration Against Burkina Faso, Funded by Locke Capital

By Harry Moran |

Third-party legal funding continues to be the tool of choice for companies looking to pursue arbitration proceedings against nation states, with corporations in the mining and exploration sector repeatedly appearing as users of outside funding.

An announcement from Sarama Resources reveals that the company has formally commenced arbitration proceedings against Burkina Faso, seeking at least A$180 million in damages. The arbitration claim is centred on allegations that the government of Burkina Faso illegally withdrew the Sarama’s permit for the Tankoro Deposit, which was the focus of the company’s Sanutura Project.

As LFJ previously reported in October, Sarama has secured A$6.7 million in funding from Locke Capital, which Sarama’s President and CEO, Andrew Dinning said would “cover all expenses related to the Company’s arbitration case.” Sarama has brought on Boies Schiller Flexner to provide legal representation during the proceedings.

As part of its formal commencement of proceedings, Sarama has submitted a Request for Arbitration (RFA) to the International Centre for Investment Disputes (ICSID). The company noted that the RFA has been submitted following the end of the 60-day consultation period, which was required after Sarama had provided Burkina Faso with its Notice of Intent to Submit Claims to Arbitration. Sarama explained that the consultation period had passed without any response from the Government of Burkina Faso, and therefore no settlement had been achieved.