Kenneth A Brause, a 35-year veteran of the financial services industry, has been appointed the new CFO of Burford Capital. He’ll be fulfilling his duties in the New York office after a three-month period where the current CFO, Jim Killman, will aid in the transition.
Speculation is rampant that a recent 5.6% drop in Omni Bridgeway stock was precipitated by a partial settlement in the Wivenhoe class action. The funded case, which involved over 6,500 claimants, sought damages of roughly $880 million. Defendants included the Queensland government, and two state-owned companies: Seqwater, and Sunwater.
The latest episode of the LFJ Podcast features Ben Moss, Litigation Finance Portfolio Advisor at Orchard Group. Ben discussed the benefits of Orchard’s asset manager model, how Orchard is approaching the market, the types of claims it is looking to fund, and outlined his predictions for the industry as the global legal landscape emerges from COVID-induced lockdowns.
Survivors of the so-called “Stolen Generations” may finally see their day in court. Shine Lawyers are gearing up to file a class action against the Australian government. More than 800 claimants are asking to be compensated for the loss of culture and connection to their country, and for the trauma suffered.
A 2017 class-action lawsuit brought by Shine Lawyers against Westpac Group has settled. The case claimed that an estimated 80,000 customers were sold unnecessarily expensive insurance between 2011-2017. The action was funded by third-party legal funder JustKapital.
Those who remain skeptical of the benefits of Litigation Finance need look no further than the recent UK Post Office case. Last week, 30 criminal convictions were vacated in an action that would not have proceeded were it not for third-party legal funding. And make no mistake—that would have been a grave injustice.
There are a number of reasons for the spike in IP cases experienced in recent years. These include the passage of the Defend Trade Secrets Act, as well as increased use of litigation funding—which has allowed small and medium-sized businesses the funds they need to pursue IP claims. To better serve clients in this area, Omni Bridgeway brought in Stephanie Southwick in September 2019.
Last year, the UK saw a sharp decline in the number of commercial litigations. This happened due to the combination of economic shortfalls, and corporations opting not to pursue litigation during a pandemic. EY research shows that nearly a third of survey respondents opted not to pursue litigation during the pandemic. That implies a backlog of meritorious claims.
Delta Capital Partners Management LLC, a global private equity firm specializing in litigation and legal finance, is pleased to announce the launch of a new venture, Delta Credit Solutions (“DCS“). DCS will offer an array of litigation finance credit solutions that satisfy the needs of claimants, respondents, law firms and businesses across the globe.
LCM CEO Patrick Moloney details that LCM has made strong progress in the first half of its fiscal year. Quality applications are up, and demand for legal finance is increasing as predicted. Most of the direct investment portfolio is balance sheet funded, and portfolio investments are reaching maturity. While timing remains somewhat unpredictable, that should smooth out as portfolio investments increase over time.
The District of New Jersey has proposed an amendment that, if enacted, would require disclosure when a plaintiff or defendant is utilizing third-party legal funding. The proposed Rule 7.1.1 would require filed statements detailing all information about non-parties providing funding for attorney fees and expenses, in exchange for a percentage of any award.
Earlier convictions for theft, fraud, and false accounting have finally been quashed after a legal skirmish lasting more than a decade. Thanks to support from third-party funder, Therium, thirty-nine sub-postmasters cleared their names after being prosecuted by the state-owned Post Office. The employees had been charged over shortfalls in various branch accounts. It was eventually discovered that Horizon, the IT system used by the Post Office, was to blame for the perceived financial shortfalls.
Litigation funders provide non-recourse funding to litigants, in order to enable them to pursue a meritorious case they couldn’t otherwise afford. It’s a straightforward process with a net societal gain of increasing access to justice. So why aren’t more people making use of it?
It may seem like a meritorious case and a competent legal team are all a plaintiff needs to recover funds. But what happens when a defendant declares bankruptcy? The situation becomes more complex for all involved—but it’s certainly not insurmountable if you know how to proceed.
As the science becomes more definitive, climate-related lawsuits are growing in number and size. Since 2018, legal actions relating to climate change have almost doubled—at over 1,700 cases globally. Thus far, nearly ¾ of the total lawsuits have been aimed at governments. This is sure to continue as closer attention is paid to the stated goals of the Paris Climate Accord.
Temur Akhmedov, the adult son of divorced Russian oligarchs Farkhad Akhmedov and Tatiana Akhmedova, has been ordered by a judge to pay his mother GBP 100 million. The judge, Gwynneth Knowles, reportedly called the younger Akhmedov “dishonest,” saying he would stop at nothing to assist his father.
RBG Holdings is the parent company for a number of legal entities including legal firm Rosenblatt Limited, Convex Capital Limited, and LionFish Litigation Finance. Now, RBG has added boutique law firm, Memery Crystal, to its stable of businesses.
In the United Kingdom, investor fraud is a growing problem. According to the UK’s own national reporting, Action Fraud received more than 17,000 reports of investment fraud—to the tune of over GBP 650 million. So what’s the good news? The Litigation Finance industry can be instrumental in helping defrauded people receive remuneration through collective actions.
Managing Director of Bench Walk Advisors, Adrian Chopin, makes it his business to dissect and quantify different aspects of the litigation funding market. Recently, Chopin examined the impact of operating costs by comparing two hypothetical cost structures used by funders.
Delta Capital Partners Management LLC, a global private equity firm specializing in litigation and legal finance, is pleased to announce a new senior executive hire and promotions within the firm. Todd Schneider has joined Delta as Chief Financial Officer and Chief Compliance Officer; and Gabriel Olearnik and Daniel Bond have been promoted to Director of Investor Relations and Director of Underwriting, respectively.
Until last September, the US Patent and Trademark Office ran a review program when financial services companies are accused of infringing patents. The program was developed to adjudicate IP violation cases in less time and with more cost-effective conditions. That program has since expired—exposing banks and other financial service providers to a greater danger of lawsuits.
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?
