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

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.

Pretium Partners LLC is an investment management firm specializing in corporate, residential, and structured credit. It has recently announced the formation of a new investment group focusing on third-party funding.

This past June, the European Parliament’s Legal Affairs Committee published recommendations for the European Commission. This draft report is being discussed and debated by the Economic Affairs Committee before being discussed in Parliament in November. If Parliament adopts the draft report, the next step would be for the European Commission to draft new legislative proposals.

A recent class action against Volkswagen Group Australia has been dismissed. Costs have been awarded to the car manufacturer and will be paid by the third-party litigation funder for the plaintiffs.

A third Demark-based foundation has filed a case against TikTok media group over data they claim was harvested illegally. The suit impacted about 4.5 million Dutch users across all age demographics.

Gately, the first law firm to list publicly in the UK, recently announced a GBP 20 million litigation funding arm. Expected to begin in early 2022, the funding arm will specialize in claims related to insolvency, investor and shareholder disputes, fraud, and asset protection and recovery.

Leading legal funder Omni Bridgeway recently announced that it is funding appeals over judgments against Halifax Investment services Pty Ltd, and another Halifax entity—both currently in liquidation.

Follower Notices have been in use since 2014, and refer to a notification given to someone who has used an “avoidance scheme” that was determined to be ineffective by a case against another user. This gives taxpayers an opportunity to adjust or amend their tax filings. Her Majesty’s Revenue and Customs (HMRC) issues these notices frequently, which is considered controversial for a variety of reasons.

London-based law firm Mishcon de Reya has announced the launch of MDR Solutions, a new litigation funding venture. The finance arm was established with support from Harbour Litigation Funding, which has promised $200 million to the fund.

Litigation funding existed for more than a decade before anyone thought to question whether disclosure mandates were needed. After Gawker was driven into bankruptcy by a single lawsuit, legal professionals and even the media began discussing whether disclosure rules were needed.

When funding leader Burford Capital took a long look at the ways legal and finance teams manage legal assets for their companies, they learned a lot. Most vitally, there are three things companies can do to make better use of their legal assets.

It’s largely agreed that uncorrelated investments are in demand. Given the ongoing impact of COVID, as well as pending inflation, it makes sense to seek out uncorrelated assets. But SYZ Capital co-founder and managing partner Marc Syz, says that some investors may be confusing correlation with risk.

Six banks based in China have avoided liability in their role in the Nike Counterfeit case. The banks were cited for failing to freeze the assets of several hundred counterfeiters of Nike goods. Together, the banks faced sanctions of up to $150 million.

In-house legal departments are enduring more pressure than ever to reduce expenses. According to a survey by Harvard Law with Ernst & Young, 88% of GCs stated that they’ll likely have to reduce legal spending over the next few years, while more than ¾ have difficulty meeting current workload goals. Roughly the same number have predicted that their workload will soon grow to exceed their budgets.

At some point in the business life cycle, every law firm could use a financial boost. Law firm funding helps firms and legal departments monetize pending litigation by providing non-recourse funds. This differs from standard business loans which are paid back fully with added interest.

Leading litigation funder Burford Capital has revealed that nearly 50% of its current cases have experienced delays relating to COVID.

Litigation Finance is a growing asset class, spurred on by the financial fallout caused by COVID. Increasingly, investors are seeking uncorrelated investments. As Gary Sweidan, founder of Taurus Capital explains, litigation funding is about as uncorrelated as it gets.