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

Sometimes, the various stakeholders involved in bankruptcy cannot come to terms with how assets should be divided. This can lead to inter-creditor litigation—which is costly and can take months, even years. Consequences of failing to litigate this type of dispute can be high—but creditors may feel they have no choice but to litigate further.

State courts face an array of challenges, only some of which are related to COVID. Budget cuts, ever-growing backlogs, logistical concerns, even constitutional challenges are impacting the legal world in myriad ways. Meanwhile, lawyers, judges, defendants—everyone is looking for ways to get back to some semblance of normalcy.

There are a multitude of ways to structure an affirmative recovery program, but the central guiding principles remain the same. It’s vital to make any new initiatives company-wide so everyone is involved and participating in the same goals. It’s equally important to know that focusing on the legal department doesn’t have to mean enlarging your staff.

 In today’s uncertain financial climate, investors are seeking non-correlated investments and higher returns. As the need for an independent class of assets grows, so do the investments in the Litigation Finance war chest. Litigation funding is insulated from larger financial tides—regardless of what happens in the stock market, with interest rates, etc., litigation assets are not impacted by outside factors.

Invictus Global Management LLC is providing $10 million in funding to cover the legal proceedings of NS8, a Las Vegas-based fraud prevention and cybersecurity company. This week, the company filed for Chapter 11 in a Delaware court.

German payment processor Wirecard has filed for insolvency as of June 2020. This comes after a startling admission that over $2 billion in cash listed on its balance sheets did not actually exist. Unsurprisingly, this led to a share price drop of over 90% over the course of a week—disastrous for those whose pension funds were invested in it by default.

International litigation funder Milberg Ltd has been fined GBP 21,000 for allegedly mishandling GBP 3MM intended for a class action the firm was not involved in. Initially, the money was meant for a Milberg subsidiary, Ferguson Funding Limited, for a class-action suit against a car manufacturer in a scandal involving emissions.

Last month, a commercial court in the British Virgin Islands officially recognized the use of third-party legal funding by liquidators in an insolvency case. The practice had been going on for some time, but this first written ruling on the matter is considered an overt approval of the practice.

Omni Bridgeway is considered a smallish company, despite a market capitalization of nearly a billion AU dollars. Still, institutional investors are buying in. To some minds, institutional buy-ins validate a stock’s overall value. Others caution against putting too much faith in how institutions invest. A recent analysis looks at investor data for the previous 12-month period.

Burford Capital’s 2020 legal finance report is teeming with useful information on the state of the industry and where litigation funding is headed. Featured are managing director Greg McPolin and CMO Liz Bingham.

A case between the Nigerian government and oil giants Eni And Shell is still underway. The issue is OPL245, and an allegedly corrupt deal made in 2011. While everyone involved maintains that their actions were legal, prosecutor Fabio de Pasquale and the Federal Republic of Nigeria are looking to prove otherwise.

Commercial trucking insurance rates have climbed steadily over the last decade. Despite price hikes, the industry has underperformed for the last nine straight years. The problem? According to some, Litigation Finance coupled with ‘nuclear verdicts’ is helping losses far outpace profits.

A recently released California State Bar opinion on ethics is likely to hold sway in the legal world despite differing markedly from the NYC Bar and ABA recommendations. The opinion covered legal finance and the ethics in utilizing it, and involved multiple rounds of public commentary—including funders like Burford Capital.

As the COVID pandemic continues to impact every area of business, legal professionals are finding ways to transition, diversify, and combat the challenges that face them. Legal tech in particular has had to adapt to the pandemic with lighting speed—with firms forced to discover new means of remote working, virtual meetings, and paperless filing.  

How exactly is international arbitration changing? The International Arbitration Conference set out to answer that very question. This year’s conference shined a light on how Australia became a favored destination for funded arbitrations around the globe.

Burford Capital is turning heads with its newly-minted listing on the New York Stock Exchange. This NYSE listing is the first of its kind for a Litigation Funding firm.

A California judge ruled this week that a litigation funding agreement between Impact Engine Inc and an unnamed funder is work product and therefore protected by privilege. 

A case representing roughly 100,000 women and children targets African mining company Anglo American. With litigation funding provided by Augusta Ventures, the case will pursue claims that those living near the Kabwe lead mines were poisoned.

Therium Access has been named a finalist for ‘best pro bono initiative’ by The Lawyer. The program was launched to provide increased access to justice through investment—providing needed capital to the most vulnerable.

A source has revealed that controversial billionaire Jonathan Munz is funding a challenge to the Victorian government’s recent COVID lockdowns. While not the sole financier, Munz is reportedly sinking at least $1 million into the case. That shouldn’t break the bank, as Munz’s reported assets top $1.5 billion.

The use of legal finance is increasing in several important offshore jurisdictions. But how well is that going? Burford Capital’s recent roundtable discusses the effectiveness of legal finance in maximizing recovery in insolvency cases around the globe.

A recent study of in-house counsel and private attorneys affirms that the use of litigation funding is up more than 100% since 2017. Burford Capital released the study of roughly 500 legal professionals, which confirms the explosive popularity of the practice.

Law firms and businesses alike are making even greater use of Litigation Finance in the wake of COVID. That’s good news for Burford Capital, whose listing on the New York Stock Exchange went live this week. Recent reporting on the popularity of the practice, combined with this new NYSE listing and the formation of the ILFA, makes it clear that litigation funding is on the rise.

As many as 8,000 people are believed to have been directly impacted by Western Australia’s practice of kidnapping and enslaving children in the 1940s and beyond. A class action has been filed to collect wages that were never paid to the workers. So far, at least 1,000 of those affected have registered their intent to seek remuneration.