A settlement in the IAG class action is currently under review after preliminary hearings. The proposed $138 million settlement comes after the company was ordered by ASIC to refund customers for add-on products that were essentially without value.
It’s no secret that when the economy is tough, litigation increases. As the CEO of LexShares, Jay Greenberg, explains–even those who don’t normally use litigation funding are reaching out. Businesses are more anxious than ever to collateralize existing lawsuits and take steps to ensure that any impending claims can be litigated effectively.
Tetragon and its diversified alternative asset management business, TFG Asset Management, have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital, a multi-product global asset management business that will sponsor and manage litigation finance related investment funds. Contingency Capital will have its formal launch on 1 November 2020.
Today disputes-only law firm, Hausfeld, is pleased to announce that Sarah Moore has joined its London office as partner from Leigh Day. She joins Hausfeld to further strengthen its human rights and environmental disputes practice and lead and grow its product liability practice. Her expertise also complements its group actions and consumer claims work.
Litigation Finance has been slowly growing since it first gained acceptance during the last financial crisis. In addition to a funding model that pairs funders with a single case, litigation funding can also come in the form of claims monetization.
Litigation funding is growing in popularity all over the world. The practice of third parties funding cases in exchange for a share of the rewards is a lucrative business model. Better still, it increases access to justice for those who couldn’t otherwise afford it. So why are insurers in Canada speaking out against the practice?
A new report from Burford Capital reveals that profits were down 15% during the first half of this year, as it reported to the London Stock Exchange. Much of this is due to fallout from Coronavirus, which led to group-wide commitments ending down a startling 74% to roughly GBP 152 million.
Questions about litigation funding led to a stay of proceedings during the liquidation of Stonewood Homes. That stay has been lifted by Associate Judge Owen Paulsen on September 25th. In August, a ruling stated that the liquidators, Rhys Cain and Rees Logan, could submit a request to lift the stay once concerns regarding the funding arrangement could be addressed.
While COVID takes a toll on businesses around the globe, Litigation Finance is experiencing boom times. As the number of insolvencies increases, funders are readying for an influx of new requests. In preparation, Litigation Capital Management has created an asset management division.
Litigation regarding intellectual property is undergoing a transformation. Judicial and legislative reform has led to changes that have made IP cases more complex and time-consuming, and therefore even more expensive to see to completion. Interestingly, companies based in Asia are looking toward US monetization strategies despite the inherent challenges of doing so.
LexShares, a leading commercial litigation finance firm, today announced the addition of Kenneth Harmon as Director of Risk & Deputy General Counsel. Drawing on a 28-year background prosecuting white-collar criminal matters and whistleblower-related litigation for the federal government, Mr. Harmon will be evaluating and servicing a growing pipeline of legal claim investment opportunities as a member of the firm’s Investments Group.
Therium, a leading global provider of litigation, arbitration and specialty legal finance, is pleased to announce the launch of a new publication aimed at educating corporations and their legal departments on the importance of monetizing their litigation assets through structured affirmative recovery programs. A Good Offense: The Therium Guide to Creating an Affirmative Recovery Program, is available as a progressive eBook, beginning today with the release of chapter 1, which introduces the concept of affirmative recovery and delves into its history. New chapters will be released during the last week of each month moving forward.
The initiative will support Hugh James across all services with the initial launch focusing on their niche Military Personal Injury claims, including military deafness and cold related injuries.
Tax disputes are common, yet notoriously difficult to complete. They’re also expensive, complex, can take years to fully resolve and even longer to complete structured payments. When large businesses and corporations are involved, existing rules make the situation even more complicated. Litigation Finance is commonly sought in class actions and other large litigation. But now some suggest that there’s a place for litigation funding in the world of tax disputes.
A trade group comprised of Litigation Finance entities was a long time coming. Over the last decade, the industry has evolved from a niche service used in very specific circumstances to a multi-billion-dollar industry spanning the globe. The formation of the International Legal Finance Association (ILFA) is a welcome addition to the litigation funding landscape.
As the Litigation Finance industry has grown, some parts of the world have met the practice with suspicion. Some countries have suggested or enacted legislation designed to encumber and restrict the process of third-party funding in litigation. In the wake of COVID-19, however, the need for the practice has been affirmed.
Unless you are new to the world at large, you know that corporate misconduct happens. And sadly, it’s not always appropriately consequenced. In Australia alone, over a billion dollars has been paid or offered to customers as part of awards or settlements for misconduct.
Understanding how to assess the value of claims is an essential part of Litigation Finance. Any reputable funder will have their own in-house team of analysts and experts in a variety of disciplines. One way to better understand the process, is with case studies.
As Litigation Finance has grown, so has industry suspicion over the practice. Some groups are obsessed with the idea that lit fin requires greater oversight and even reform. In August of this year, the ABA distributed its Best Practices for Third-Party Litigation guidelines. This document is the first time the ABA has formally addressed Litigation Finance since 2012.
A contentious legal battle between artist Akiane Kramarik and Carole Corneliuson of Art & SoulWorks is well underway. The artist earned worldwide acclaim after an appearance on the Oprah Winfrey show when she was only nine. Since then, her art has been reproduced and sold around the globe. As financial discrepancies emerged and poor reproductions of Kramarik’s work came to light, legal action was taken to dissolve the business relationship and prevent Art & Soulworks from selling more of Kramarik’s work.
Rebecca Berrebi is a litigation consultant whose firm, Avenue 33 LLC, provides insight and advice to a variety of clients. Her expertise spans many industries and she has clients across the globe—including Europe, Asia, Africa, Latin America, and North America.
Omni Bridgeway continues its US expansion with three new hires in New York, bringing on Megan Easley and Austin Ginnings as Legal Counsel and increasing gender diversity on its US investment committee with the addition of Martha E. Solinger.
The following article is part of an ongoing column titled ‘Investor Insights.’
Brought to you by Ed Truant, founder and content manager of Slingshot Capital, ‘Investor Insights’ will provide thoughtful and engaging perspectives on all aspects of investing in litigation finance.
Should energy companies be able to sue governments when climate change impacts their business? A potential overhaul to the UK private court system might have prevented that altogether. However, negotiators have ruled out any new rules that would prevent fossil fuel and other energy-producing companies from suing governments.
The insurance industry is facing a hard market thanks to multiple factors including the COVID pandemic. Hard markets are a time of high insurance premiums, more precise and complex underwriting, fewer policies being written, and a shrinking pool of competitors. With that in mind, insurers are raising money to make the most of opportunities as they arise. At the same time, investors are understandably cautious.
Nikola, a company that calls itself a pioneer in electric vehicles, has been accused of deception by a Hindenburg Research report. The report refers specifically to videos created to make prototype vehicles appear fully functional, and other alleged deceptions about the status and efficacy of its newest tech. Could a shareholder class action be forthcoming?
Nigeria’s Ministry of Justice has been asked to weigh in on a secret deal between two Lagos-based solicitors (Johnson and Johnson) and an offshoot of Drumcliffe Partners—an American litigation funding firm. The deal focuses on monies recovered from the OPL 245 oil scandal, after rampant misuse by Dan Etete. If the secret deal stands, as much as 35% of all recovered awards might then find their way to the US funder rather than the Nigerian people.
The Securities and Exchange Commission process continues as Burford Capital moves ahead with its plan for a listing on the New York Stock Exchange. The company has been listed on the AIM exchange in London since 2009. Burford announced that they have received approval for the new listing, however, official approval is still pending as customary listing conditions dictate.
