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

For nearly a year, COVID has kept the world in a state of uncertainty. Temporary changes stretch out for months, and no one is sure when things will ‘get back to normal,’ or indeed, what ‘normal’ will look like when that happens.

Since the 90s, competition authorities like the European Commission have been getting tougher on Big Tech. Fines have been coming down on tech giants like Apple, Google, Intel, and Microsoft. Some of these cases have resulted in fines in the billions. But who is really benefitting from the success of these?

Given the impact of COVID, insolvencies are on everybody’s mind–how to avoid them or how to navigate them. Knowing what to do when you find yourself in the middle of a business or personal insolvency is crucial. Litigation funding may be one of the most valuable tools in the insolvency toolbox.

As any lawyer will tell you, emotion and litigation are not a good mix. Still, it can be difficult not to feel emotional when a betrayal, theft, or other act of deliberate impropriety leads to trade secrets litigation.

Some say Litigation Finance is partly to blame for the latest round of insurance rate increases. Many speculate that an increase in the number of cases and award sizes have led to significant rate hikes.

Two London-based lawyers have been promoted to Partner at specialist litigation firm, Hausfeld. These promotions echo the number of partnership elevations from the previous year. Hausfeld has added a litigation funding arm to its operation, making it one of a growing number of law firms that has done so.

Last year, mining and exploration giant Montero, announced its intention for arbitration after accusing the government of violating several provisions of the Bilateral Investment Treaty. The dispute pertains to acts and omissions by the Government of Tanzania that allegedly breached BIT and caused harm to Montero and others.

A boy sent to Christmas Island in spite of being only 14 is now leading a class action against the Australian government. He is one of at least 100 children prosecuted during a 2-year period beginning in 2010. Ali Yasmin was judged to be an adult after using wrist X-rays, a now-discredited method of determining age. The class action is being funded by an undisclosed litigation finance firm. Yasmin et al are represented by Ken Cush & Associates.

New year, new job. Litigation Finance has been expanding as an industry for over a decade. Investment size is growing, more and more clients are seeking out funding, and big names in law, tech, and finance are clamoring to get in on the action.

As COVID, politics, and financial uncertainty continue into a new year, savvy predictions are the order of the day. With that in mind, CEO of Validity Finance, Ralph Sutton, shares his predictions for third-party legal funding in the coming year.

In Australia, Litigation Finance may have found a new niche—Family Court. Some would say that the Sydney registry of Australia’s Family Court is already highly adversarial. The court is known for wealthy divorcing couples playing out their acrimony in a public setting. Legal teams often seem to encourage this.

The largest divorce settlement in history is still unsettled. While the ex-wife of Russian billionaire Farkhad Akhmedov was awarded over $600 million in the divorce, she has received next to nothing from her ex-husband. To combat this, she enlisted help from Burford Capital, a publicly-traded legal funder.

It cannot be denied that as acceptance of Litigation Finance increases, class actions increase in number. This is viewed by most as a positive, as it demonstrates that the practice is affording access to the legal system. Increasingly, class actions involving pension fund-related investment losses are cropping up across the US and Europe.

As anticipated, Brexit has led to uncertainty—even chaos in some industries. In the legal landscape, Ireland is in a perfect position to capitalize on its status as an EU member state. Ireland’s legal system and laws are largely similar to those of Britain, which allows it to offer similar legal remedies with the same basic enforcement.

Litigation Finance has exploded in popularity over the last decade. This was caused by a number of factors, and cemented by the impact of COVID. Litigation Finance is now a powerful industry with major financial strength behind it. But it hasn’t yet reached every corner of the globe. Could India be the next frontier?

Sarah Tsou is an investment manager with funding leader Omni Bridgeway, where she specializes in patent litigation. In IP Watchdog’s recent podcast, Tsou explains the modus operandi most commonly used to defend against patent suits. Well-monied defendants can drag out even a meritorious patent suit for years—depleting the resources of patent owners.

This year has been unique in terms of obstacles, uncertainty, and hardship. Record layoffs and business closures have caused disruption around the globe, and the legal world is beset by delays juxtaposed with a tidal wave of new litigation. Thankfully, it has also brought about a rise in the use of litigation funding.

India is currently one of the world’s top five economies. That’s good news. But like most top economies, Covid is causing disruption and discord. The pandemic may also lead to a flurry of new litigation as it has in much of the developed world. Will India be joining the likes of Germany, Australia, UK, Singapore, and others in their acceptance of litigation funding?

A recent announcement from Anderson Mori & Tomotsune indicates the formation of a “foreign law joint enterprise.” In essence, the firm is taking on partners who are registered lawyers from the US, UK, and Mainland China. All are fluent in Japanese.

Litigation Finance is increasing in use and acceptance as an innovative, ethical option when money is scarce. According to the 2020 Legal Finance Report, use of third-party litigation funding is up 105% since 2017.

In these trying and potentially volatile economic times, CFOs may have every reason to worry. They also have reason to innovate, adapt, and find creative solutions to maintaining balance sheets.

Massive new oversight is needed to reign in the litigation funding industry—that’s the conclusion according to a report from the parliamentary joint committee on corporations and financial services. An array of recommendations has been suggested, though it did not include Frydenburg’s most severe requirements.

Could anyone have predicted these insane Omni Bridgeway returns? Omni Bridgeway isn’t making a profit currently. For the previous five years, revenue has trended downward at a rate of more than 30% per year.

A recent panel, the Global Legal Groups Class Action Symposium, looked at US and EU collective litigation, examining trends. Of particular interest are new global class action laws and how inter-jurisdictional issues will be handled in the future.

Nick Rowles-Davies doesn’t mind being called an “ambulance chaser.” Maybe that’s because after chasing down an ambulance, his Sydney-based Litigation Finance firm, LCM, helps the injured parties seek justice. That’s the nature of litigation funding, and it’s working for a lot of people.

An impressive $57 million settlement was distributed among members of the Williamtown Contamination Class Action earlier this week. This comes as part of a settlement from February of last year, in a case involving PFAS contamination of homes, farms, and other businesses.

Recently, two portfolio managers at Burford Capital shared their thoughts on 2020’s 4th quarter, the continued impact of COVID, collections, and challenges in cash management. Nicholas Cooper and Patrick Wackerly explain year-end financing and more.