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

Asset recovery is a tricky business in the best of times. When financial professionals misappropriate funds for their own gain, they can be remarkably clever about hiding it. Such was…

Government-owned entity Southern Response is engaged in a last-ditch effort to avoid an opt-out class action over allegations regarding earthquake insurance settlement claims. Policyholders have asserted that Southern Response withheld information allowing them to underpay when settling claims related to the Canterbury earthquake.

The largest divorce settlement in Britain’s history is not over yet. Temur Akhmedov recently lost his effort to keep his money secret from his step-mother—who is still attempting to gain the award settlement from her divorce. Tatiana Akhmedova is utilizing litigation funding from Burford Capital as she pursues her claim.

Lauren Bernstein joined Curiam Capital LLC in March 2019. Her experience spans more than a decade. In this interview, she discusses starting her own business in 2014, why she chose to work in Litigation Finance, and how COVID impacts several parts of her life.

How big is the addressable market for Litigation Finance? An exact number would be difficult to come up with. What we do know is that the $85 billion number asserted by Omni Bridgeway and others is the subject of much debate. It represents an estimate of the fees that were paid to plaintiff’s lawyers, but is not really indicative of the state of the entire market.

The current trends of litigation related to intellectual property in Pharma indicate an increase in both cost and risk. Does that mean Pharma cases are a bad investment? One might think so, given how complex patents can be, or the increased risk inherent to Pharma regulations. Even successful cases might later be overturned.

A recent Australian class action award has some legal professionals rankled. Should the federal government take a more active role in regulating agreements between plaintiffs, attorneys, and third-party funders? Attorney General Christian Porter thinks so.

Clause 8 recently hosted a podcast discussion on patent law with investment manager Sarah Tsou of Bentham IMF (now a subsidiary of Omni Bridgeway). Patent law is its own legal specialty owing to the detail-oriented approach and gray areas that it encompasses. Unlike other fields, patent law is not always cut and dry. Likewise, legal cases involving patent law require specialized technical knowledge.

Eight hundred people lost their jobs when refinery Queensland Nickel became insolvent in 2016. Townsville, the locale of the refinery, found itself in financial peril after the collapse. Mayor Jenny Hill explains that the closure caused expansive economic and social issues that have still not been fully mitigated. The city claims to be owed $2.5 million by parent company QNI Metals.

Social inflation is a bit of a buzzword, used to describe a rising cost in insurance claims. Some say this is sour grapes from insurers who don’t want to pay out on pandemic-related policies. Others insist that social inflation is a real problem that, if left unchecked, can cause damage to the very concept of insurance.

It’s normal for a plaintiff to think that after a long court process and a favorable judgment, the worst is behind them. However, not every losing defendant is going to comply as they should. So when it comes to securing judgments and awards, asset tracing is a crucial component. 

The pandemic, financial unrest, and now global protests are changing the ways we organize, communicate, and do business. What does this mean for the future of Legal Services?

Like much of the world, Canada is seeing an influx of insurance disputes connected to COVID-19. As more and more insurers insist that their business closure contracts don’t provide protections during a pandemic—businesses and private citizen alike are seeking access to justice.

A growing economy can also lead to growth in litigation disputes. That means an increasing need for great lawyers, and a means to enforce awards. After all, a good judgment doesn’t do much if it cannot be enforced. This can be a particular issue in Asian markets, where legal disputes have risen sharply in recent years.

The idea that clients may be able to pursue a claim without a large initial investment may seem too good to be true. The reality is that litigation funding exists for just that reason—so ordinary people have the means to seek justice when they are wronged.

The legal field experienced record-setting business in 2019. Alas, this year much has changed. Despite many firms seeing a large influx of cases and inquiries, financial tensions loom. COVID-19 has led to worry, late payments, furloughs, court delays, and even outright insolvency for some.  

Unrest in the world of investment is nothing new. But current pandemic conditions have led to a wave of class-action lawsuits, many of which come from investors who feel that they were misled on relevant issues. In response, the Australian federal government has announced a rolling back of disclosure rules to protect large companies from class-action suits.

COVID-19 does more than sicken people. It’s brought with it a recession that may take years to mitigate. Businesses across the board are enduring hiring and wage freezes, furloughs, layoffs, and even outright closures. Even the legal community is not safe from the financial ravages of the pandemic.

It’s no secret that lawyers and firms anticipate a slew of new cases as a result of COVID-19. The Litigation Finance industry in particular is preparing for a future full of contract breaches, insolvency, and failed insurance payouts. This leads some to suspect that betting on court cases will be popular among investors in the coming months.

Therium is a household name in the world of Litigation Finance, and with good reason. As a prominent funder, they’ve expanded access to justice for countless ordinary citizens. Now, Therium has teamed up with five foundations to establish the Community Justice Fund. Its purpose is to provide grants in support of social welfare during and after the Coronavirus pandemic.

Everything we know about the business world is changing, in no small part due to the Coronavirus. Retail outlets, restaurants, bars, theaters, and even insurance companies are feeling the crunch caused by stay-at-home orders, supply shortages, and staffing woes. Yet through it all, Litigation Finance is enjoying a surge of opportunity.

Tail Risk is a term used to describe a situation that’s unlikely to happen, but would have a profound impact should it take place. The current COVID-19 pandemic certainly qualifies. The disruption caused by the Coronavirus outbreak is affecting markets around the globe, yet despite the upheaval – or perhaps because of it – Litigation Finance is thriving.