News and analysis dedicated to the commercial litigation funding sector including regulatory issues, case developments, funding activities, and more.

Miami company MSP Recovery, along with its new partner—Lionheart Acquisition Corp II—announced a deal with Virage Capital Management for a 50% share of all future awards against property and casualty insurers.  

Three Warrington men are bringing a claim against German carmaker Mercedes, relating to its role in the recent dieselgate scandal. Working with lawyers from consumer rights firm Slater and Gordon, the trio expects the case to become a collective action. Slater and Gordon is also a joint lead attorney in the dieselgate action against Volkswagen.

Even among other large-scale infrastructure projects around the world, China’s Belt and Road Initiative (BRI) is impressive. Its plan is to expand and fortify the Silk Road in an international effort that involves stakeholders from around the globe. In any venture of this size, legal disputes cannot be avoided.

Nearly 150,000 customers have allegedly been impacted by unscrupulous practices by Australia New Zealand Banking Group. A class action alleges that the banking behemoth failed to refund fees and pay out interest.

AxiaFunder has announced that the company remains confident of its ability to turn a profit in 2022. In 2020, the platform—which focuses on crowdfunding for legal actions—reported a loss of nearly GBP 400,000.

New-Delhi based start-up LegalPay has announced the closing of its first special purpose vehicle. The arbitration-focused SPV, which involved a pool of 8-12 cases that would diversify investment risk, was oversubscribed in record time, according to a recent statement from the company.

Australia’s requirement for third-party legal funders to hold an Australian Financial Services License took effect in August of last year. From that point forward, funders were subject to rules regarding managed investment schemes under the Corporations Act.

Two of the most prominent art lawyers are departing their New York law firm to open a boutique firm. The founders of the new firm, Larry Kaye and Howard Spiegler, announced their intent to focus solely on matters involving art law. Those involved have called the split “friendly,” and say it’s largely about Kaye Spiegler embracing higher levels of risk.

The litigation funding landscape is expanding to accommodate an ever-increasing number of players. Increased regulation, professional organizations, and a push for standardized funding agreements indicate a maturing industry that’s become an integral part of the legal world.

Last year, London saw an unprecedented 1,775 maritime arbitration cases. As the city is the accepted center for this type of dispute, that number indicates that maritime arbitration is on the rise around the globe. Arbitration can take years to resolve—allowing time for debtors to move assets around and make eventual enforcement more difficult. With arbitration funding and the expertise that accompanies it, arbitration can be the best option.

When a few Gillette executives left the company to set up shop on their own, Gillette was quick to file multiple complaints against the new company, Shavelogic.  

The pandemic has made an unwitting impact on nearly every industry. Its impact on litigation funding was largely positive. Since the first COVID shutdowns began, funders around the world have been besieged with interest from investors, businesses, and clients hoping to launch individual or collective actions. Litigation Capital Management (LCM) has seen exceptional progress, even within the funding industry.

Manolete Partners has been called the top insolvency litigation funder in the UK. In the midst of a major growth spurt, Manolete currently boasts greater than a 50% share of the insolvency funding sector.

The Supreme Court of Victoria declined to allow a 25% contingency fee. The decision represents the first time the court has used its power to make a Group Cost Order—which the court determined was preferable to a “no win, no fee” arrangement.

A class action has been launched against insurer IAG after it denied business interruption claims related to COVID-19. The case has been likened to a test case in Australia.

In the early days of litigation funding, legal firms and funders were separate entities. As the industry has grown more widely accepted, an increasing number of law firms are teaming up with funders to offer clients an array of new services. Now some are questioning whether this is really a positive development.

For the last five years, Lake Whillans and Above The Law have joined forces on a survey detailing the awareness and favorability of third-party legal funding. This year represents the…

It stands to reason that litigation funders and big corporations would be at odds over class actions. After all, it’s often funding that makes pursuing these cases possible. Third-party funding provides the tools needed for people harmed by companies or governments to seek restitution. These large entities, and those who insure them, may not be used to this kind of accountability–and blame funders for increasing access to justice.

Legal funding is an established and respected industry in Australia. It’s continually expanding and adapting to meet the needs of an increasing client pool. Leading funder Burford Capital has received and vetted more than 10,000 funding requests.

Keller Lenkner is turning heads in the legal community of late. The boutique law firm has doubled in size since the start of the pandemic, and has also opened two new offices. The firm seeks out complex cases, often class actions, where it can make a big impact in the lives of people. Before founding Keller Lenkner, the founders launched Gerchen Keller Capital—a litigation finance firm later sold to Burford Capital.