News and analysis dedicated to the commercial litigation funding sector including regulatory issues, case developments, funding activities, and more.
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The 2021 Litigation Finance Survey Findings
In September, Bloomberg Law surveyed 38 litigation finance providers, 37 lawyers, and 75 legal professionals in the UK, US, and Australia on their interest in and use of Litigation Finance. This survey provides a stirring look at developments and attitudes within the industry.
Delta Capital Partners Management Welcomes Michael Callahan as Chief Operating Officer
Delta Capital Partners Management LLC, a global private equity firm specializing in litigation and legal finance, has announced the hiring of new senior executive Michael Callahan.
US Development Sees Relaxed Rules for Law Firm Ownership
Law firm ownership has been changing in recent years. Legal professionals in Australia and the UK are leading the world regarding ownership of legal firms. Recent developments in US states like Arizona, combined with a more liberal approach on ownership from the American Bar Association, means that the tide may be turning on this issue. Other US states are considering similar measures, including California, Utah, Florida, Illinois, and Michigan.
Price Control to Ensure the Affordability of Litigation Finance?
The following post was contributed by Guido Demarco, Director & Head of Legal Assets of Stonward.
In March 2021, the European Parliamentary Research Service published a study on Responsible Private Funding of Litigation. This study was later supplemented by a draft report prepared by the European Parliament’s Committee on Legal Affairs in June 2021. Both documents, the study, and the draft report, contain certain recommendations to regulate litigation funding and criticize the economic costs that these funds impose on their clients by referring to them as “excessive”, “unfair” and “abusive”.
Zachary Krug Joins Signal Capital, Helps Launch Lit Fin Arm
Zachary Krug has joined Signal Capital Partners, a London based special situations fund with over $2.5B AUM, where he will be leading a new strategy for litigation finance and legal assets. Funding will be through SLF Capital Limited, a joint venture focused on legal assets.
Financing Affirmative Recovery Programs
Affirmative recovery programs are a growing trend, and with good reason. ARPs involve monetizing existing litigation once believed to be too costly or time consuming to pursue. Burford’s 2021 Legal Asset Report has some telling insights on ARPs. This year’s survey includes 378 senior financial officers of companies whose revenue is at least $50 million annually.
Non-Attorney Ownership of Law Firms Attracts Litigation Funders
With the elimination of ethics Rule 5.4, the state of Arizona loosened regulations prohibiting non-attorney ownership of law firms. Not unexpectedly, this has attracted interest from several prominent litigation funders. Comparable legislation is expected in multiple states in 2022, with Michigan, North Carolina, Illinois, New York, and California already considering it.
Collective Action Likely as UK Customers Overcharged for Car Delivery
This week, a hearing was held to determine whether a collective action against five car carriers based in Japan, Sweden, and Chile. The action will allege that more than 17 million cars were impacted by a price-fixing scheme run by the five firms that ship internationally. The case is being funded by Woodsford Litigation Funding.
Burford Capital’s industry-leading legal finance team continues to grow
Burford Capital, the leading global finance and asset management firm focused on law, today announces it is further enhancing its industry-leading team and legal finance offerings to clients. In addition to new hires in New York, Washington and Chicago, Senior Vice President Dr. Jörn Eschment has relocated to Switzerland to oversee the growth of Burford’s substantial business in the DACH region of Germany, Austria and Switzerland.
Law firms eye up the IPO market
A survey of law firm partners commissioned by Harbour on post pandemic strategies revealed that:
- 31% of those surveyed said their firms are actively considering an IPO in the next 12-18 months
- 50% said the pandemic had presented new opportunities for their firm
- 80% felt their senior leadership team should embrace innovation to deliver growth
- Only 22% of respondents said their firms had ruled out credit facilities with third party funders over the next 12-18 month
LegalPay: India’s First Homegrown LitFin Company
LegalPay bills itself as India’s ‘first homegrown litigation finance company.’ The business was founded in 2020 by Kundan Shahi, and strives to expand the reach of legal funding as both an alternative asset class and a means to increase access to justice.
Operator of Great Northern, Southern, Gatwick Express and Thameslink to face legal claim worth up to £73m as over 3 million consumers are overcharged for London train fares
A legal claim seeking compensation worth up to £73m for routine overcharging on train tickets affecting an estimated 3.2 million passengers has been filed against the operator of one of Britain’s busiest commuter railway networks.
Vultures in Litigation Funding—The Exception, Not the Rule
As litigation funding grows in popularity and legislation struggles to keep up—much attention is drawn to the outliers who fill funding opponents with fear. Unscrupulous funders get plenty of press coverage, further clouding already contentious issues.
Delta Capital Partners Management Welcomes Michael Callahan as Chief Operating Officer
Delta Capital Partners Management LLC, a global private equity firm specializing in litigation and legal finance, has announced the hiring of new senior executive Michael Callahan.
