Litigation is more popular than it’s ever been. With a predicted spike in litigation just around the corner, plenty of investors are wondering whether or not they should get involved. This rapidly growing industry has gone from just six dedicated lit fin firms in 2008, to over 40 commercial litigation funding entities as of last year. Together, they manage assets of nearly $10 billion.
Last year, former law firm managing partner John Garda was recruited by Longford Capital to head up their new Dallas office. This includes underwriting in addition to investment sourcing and monitoring. With more than 25 years of litigation experience, his expertise includes complex commercial and securities litigation, investment banking disputes, real estate, and construction disputes, healthcare contracts, and more.
Bankruptcy cases are expected to increase in the coming months, as companies struggle to recover from pandemic-related losses. It’s been reported that firms across the world are looking desperately to hire more bankruptcy lawyers to help handle the expected flood in new cases.
NEW YORK (June 24, 2020) – Leading litigation funder Validity Finance has selected University of Chicago Law School law student Amber S. Stewart for its 2020 Equal Access Fellowship. The program, launched last year, provides a 10-week paid summer fellowship to first-year law students of diverse backgrounds to spend the first half of their summer at Validity learning the basic principles of litigation funding before spending the second half working at the non-profit of their choice. Validity is one of the only funders to provide such a program for first-year law students.
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.
Despite improved awareness, the issue of gender inequity in law has not been satisfactorily addressed. It’s difficult to say precisely where the problem lies. What we do know is that General Counsel can be doing more to close the gender gap.
Champerty is a word we hear often in connection with Litigation Finance. Despite the term being coined in the middle ages, champerty remains a reasonable issue to take precautionary measures against. The original purpose of champerty laws was to keep litigation from becoming a commercialized business.
Litigation Finance is poised to experience a boom in demand as the world tries to recover from COVID-19. Rampant financial uncertainty creates a need for the funding that insures access to justice for those of few means. Funders are well-capitalized, and preparing to sift through cases to find those with the best chances of success. This is all very similar to what the legal world experienced during the 2008 financial crisis.
Total Commitments Exceeding $465 Million
Parabellum Capital LLC (“Parabellum”), a leader in commercial litigation finance, today announced the final closing of its latest private investment fund, Parabellum Partners II, LP (the “Fund”), with over $465 million in commitments. The Fund is Parabellum’s second broadly-offered private investment fund since its founding in 2012.
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.
LexShares, a leader in commercial litigation finance, today announced the launch of LexShares Marketplace Fund II (LMFII). With a $100 million target fund size, LMFII will invest in litigation-related assets offered on the LexShares platform. LMFII opens on the heels of the company’s 100th legal claim investment, making LexShares one of the most active litigation funding firms in the world.
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.
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.
Jersey, Channel Islands, 2nd June 2020: Therium Access, the not-for-profit arm of global litigation funder Therium, has committed £100,000 and provided its own resources to help launch and deliver the Community Justice Fund alongside grant giving organisations focused on the provision of access to justice.
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.
HONG KONG, 4 June 2020: Proceedings have been filed in Omni Bridgeway Limited‘s, (ASX:OBL) first funded international arbitration in Hong Kong since the Special Administration Region amended its Arbitration Ordinance (Cap. 609) to permit third party funding (effective February 2019).
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.
MIAMI, June 2, 2020 /PRNewswire/ — Leste Group is pleased to announce that Rodrigo Machado has joined its team as Managing Director of US Real Estate. Mr. Machado joined in May 2020 and will be focused on further expanding Leste Group’s Real Estate investments business across the USA, in addition to overseeing Leste Group’s existing investments in the Multifamily, Single Family Homes for Rental, Hospitality and Healthcare sectors.
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.
TEL AVIV (June 2, 2020) – Leading U.S. litigation funder Validity Finance has opened its first international office, in Tel Aviv, recruiting prominent international-disputes lawyer Eli Schulman to head its Israel operations. Validity is the first U.S.-based funder to open an office in Israel.
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.
