Business bankruptcy filings were up 29% in 2020 from the previous year. These numbers dipped slightly in 2021 thanks to government stimulus measures like PPP. However, as financial help from the government winds down—financial experts anticipate bankruptcy filings to spike again.
What exactly is social inflation? In the insurance context, it refers to progressively larger losses to insurers in the form of massive awards from juries. VerdictSearch data shows a 300%+ increase in verdicts in excess of $20 million compared to ten years ago. In the US alone, 79 class action settlements totaled an astonishing $2.3 billion last year. Social inflation is definitely occurring. But what’s causing it?
Litigation funding has dramatically increased its reach in the last few years. Last year, one global construction company entered into a portfolio funding arrangement that covered multiple jurisdictions—including some that were not privy to litigation funding before.
Since the SCOTUS decision in FCA v Arch Insurance et al, Manolete has been developing new ways to approach making claims for businesses in the midst of insolvency. In many instances, it’s possible to get assistance in the form of immediate cash payments that leave room for a sizable share of recovered assets, and protection from costs.
To current and past holders of the CHF 150 million 3.25% 2017-2021 bonds Issued by FF Group Finance Luxembourg II SA Guaranteed by Folli Follie ISIN CH0385518052. This offer for litigation funding does not purport to be complete and is qualified in its entirety by reference to the terms of a Claims Purchase Agreement, a Claims Assignment Agreement and a Litigation Funding Agreement.
Challenging economic times for a business can shed light on prior corporate misconduct. In 2020, there were multiple examples of corporate fraud exposed. As litigation related to insolvencies and fraud grows, institutional investors should be seeking out new strategies to ensure maximum possible recoveries.
Why are patent cases suddenly more plentiful in the Western District of Texas, when for years, the Eastern District of Texas was the reigning king? It could be the recent $2.18 billion verdict in a case against Intel Corp. The jury’s willingness to hand down such a high award is likely to attract interest in trying patent cases in the jurisdiction.
An order for securities for costs is meant to ensure that defendants can receive remuneration from an unsuccessful plaintiff. Monies are verified or set aside until the case is completed. If a securities for costs order is not met, a case may be dismissed. For the courts, deciding whether this is necessary can be a balancing act that weighs the hardship of a defendant who cannot recover costs, versus the financial burden to the plaintiff.
Timothy Scrantom was once considered a pioneer in the litigation funding community. These days, the chatter is less flattering. Scrantom, as well as Kenneth Elder and others, are ensconced in a legal battle to prevent them from seizing control of Total Asset Recovery Service.
David Prager of Duff & Phelps, Howard Brod Brownstein of The Brownstein Corporation, Tatiana Markel of BakerHostetler, and Ken Epstein of Omni Bridgeway engaged in a virtual discussion on dispute funding for financially distressed companies. This two-part podcast was produced by Turnaround Times.
The gender gap in the legal industry is easy to recognize, thanks to Burford’s 2020 Equity Project study. But recognizing the problem is only half the battle. Origination credit continues to be a sticking point—as women consistently receive less than their fair share. This fuels a cycle of inequity that can reverberate through a law firm and beyond.
You don’t have to know everything about cryptocurrency to know that it’s changing the investment landscape in major ways. Avalanche, a competitor to crypto giant Ethereum, enjoyed a robust opening followed by steady gains. Now speculation abounds about how big Avalanche can grow, and who might be edged out in the process.
Mill City Ventures III, Ltd. (“Mill City”)(OTCQB:MCVT) announced today the total financings for the quarter were nearly $8M. The amount includes a previously announced loans of approximately $2M.
As investors remain wary of the stock market, they’re left wondering how to invest effectively. Litigation Funding may prove an attractive alternative for investors depending on their risk tolerance. Litigation funding is uncorrelated to stock trading, and largely insulated from economic conditions.
Liquidators are sometimes ordered to pay costs, which is not a situation any want to be in. Liquidators have a duty to examine what led up to the liquidation, and to bring and defend a legal case if applicable. But if they lose, costs can be awarded against them personally.
A settlement in a case over PFAS contamination has claimants enraged. In 2015, residents were told by a local newspaper article that their water supply had been tainted by PFAS. The chemical had been used in foam used to combat fires. Not unexpectedly, property values plummeted and local businesses suffered.
Third-party legal funding has been in use in the United States, the UK, and Australia for over a decade. Now we see it moving into the Middle East and Asia. This may be illustrated most clearly in the construction field, where cross-jurisdictional cases are now making use of the practice.
Manchester tech company Nanoco Group has expressed confidence in its legal action against Samsung. The tech business is pursuing a case for IP infringement against the electronics leader. Nanoco has also revealed signing a litigation funding agreement with an as-yet-unnamed American litigation funder.
