Innovation and adaptability are key factors in every business trying to stay afloat during the current pandemic. Many law firm were quick to send workers home while finding remote working solutions to stave off loss of business. But as soon as some issues were managed, others cropped up. For example, the need for cybersecurity was heightened almost immediately.
This week, the ABA’s House of Delegates approved new best practices guidelines for litigation funders. The ABA’s inclusion of third-party funding in their guidelines is a necessary step, given the increasing popularity of the practice. Some say, however, that these new guidelines are not an accurate reflection of how Litigation Finance works.
Over the last 10 years, provisional measures such as security for costs have been requested in progressively higher numbers. In fact, of all the provisional measures asked for, roughly 20% have included security for costs. These requests are rarely granted, however. As it stands, most courts feel that requests for security for costs can only be granted under unusual and specific circumstances.
Intellectual property can become a valuable asset, especially during an economic downturn. That may be why new patent lawsuits have increased over 15% in recent months. Trade secret litigation is likely to follow—which may be encouraged by the overwhelming availability of third-party litigation funding.
WARSAW, Poland, August 5, 2020 — Forteam Investments Ltd., an investment company controlled by U.S. private equity firm Delta Capital Partners Management LLC (“Delta”), which is seeking over PLN 300 million from Mariusz Świtalski and companies he controls, has secured a third court injunction.
UK Litigation Finance firm Woodsford is funding a class action against BT, AMP, and Commonwealth Bank. If successful, the case could bring the funder as much as 25% of any potential reward. Craig Allsopp, class action leader at Shine, who has taken on the case, has said that funders generally receive between 20-30% of awards from successful cases.
NEW YORK, July 29, 2020 — Pravati Capital, leading litigation finance pioneer and consulting firm, today announced four new members to its esteemed leadership team, each complementing the firm’s outstanding services and legal insight. Joining Pravati Capital, Bruce Cohen, Douglas Smith, Scott Potter and Shane Ham will bolster the company’s litigation practice with specialized experience to better serve clients.
Litigation Capital Management Limited, a global provider of disputes funding, publicly listed on the London Stock Exchange’s AIM market, is pleased to announce the hire of Helene Roins as an Investment Manager based in Sydney.
After gaining considerable steam during the economic crisis of 2008, the Litigation Finance industry has only increased in popularity since. Predictions suggest that by 2027, the litigation funding sector will be worth more than double what it is now.
It’s clear by now that 2020 has been a year like no other. Industry growth and the impact of COVID make this an ideal time to catch up on all of the relevant issues impacting the commercial Litigation Finance industry. With that in mind, LFJ is hosting a panel discussion that will cover a wide range of topics, including the Burford/Muddy Waters saga, the IMF/Omni merger, the rise in IP litigation, hedge fund interest in the funding sector, and much more.
Burford Capital recently joined forces with InterLaw Diversity Forum for a study on ways to improve diversity in large firms. To that end, a panel of experts gathered to discuss the issue. Included were: Burford’s Elizabeth Fisher, Rothschild’s Sarah Blomfield, Patti Kachidza at M&G Prudential, and David Jackson from Barclays.
NEW YORK (July 28, 2020) – Looking to meet growing demand among businesses and law firms to finance commercial disputes, litigation funder Validity Finance has raised $100 million in additional capital. The firm also announced the arrival of experienced transactional attorney Jason Listhaus to fill the new role of in-house corporate counsel as its portfolio continues to grow.
LONDON, 28 July 2020: Omni Bridgeway Limited announces that it has resolved to fund proposed litigation to be brought by shareholders of Wirecard AG against its auditor, Ernst & Young GmbH. Such litigation will be brought in Germany by leading international law firm Quinn Emanuel Urquhart & Sullivan LLP.
CHICAGO, Illinois, July 27, 2020 — Delta Capital Partners Management LLC, a global private equity firm specializing in litigation and legal finance, has announced its new Board of Advisors.
NEW YORK, NY, July 27, 2020 – Bryant Park Capital (“BPC”), a leading middle market investment bank, announced today that Multi Funding, Inc (“Multi Funding” or the “Company”) recently closed on a $30 million senior debt transaction with a leading international bank. This capital injection will allow the company to accelerate top line revenue, expand its physical footprint, and operate as a significant player in the pre-settlement space.
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.
Most lawyers know the feeling of a meritorious case moving along well, until it slows, and the funding to keep it going starts to run short. What is the next step when a client lacks the financial capability to continue? Is dropping the case to save funds a viable alternative, even if it means forgoing a potential award?
In recent years, Litigation Finance has taken the world by storm. In many cases, third-party funding has helped ordinary citizens seek justice against much larger entities—even governments. Now there’s talk of Bangladesh adopting the practice. What could that mean for the country itself, and the wider region?
SYDNEY, 16 July 2020: Omni Bridgeway Limited (ASX:OBL), announces a new legal finance facility and an equity investment in an exciting new Japanese business providing Japanese clients with access to justice, without the associated costs and risks of pursuing their claims.
Augusta, the UK’s largest funder of litigation by case volume today announces the appointment of Clara Segurola as Lead Economist.
The financial stressors caused by the global pandemic have touched nearly every industry. Legal firms are finding it difficult to cope with remote working conditions, court stoppages, and declines in billable hours—all while trying to address a huge influx in proposed litigation. One expert is confident that Litigation Funding is the ideal way to address shortfalls and keep budgets in balance.
CHICAGO – July 13, 2020 – Longford Capital today announced that Marc A. Cavan has joined the firm asDirector. Mr. Cavan will assist with investment sourcing, due diligence, and monitoring of portfolio investments, supporting Longford’s Chicago and Dallas offices.
The UK’s Legal industry generated revenues of £2.35bn in May 2020, 12% down on May last year. May 2020 was the lowest-earning month in four years, according to Office of National Statistics data released on 14th July.
The legal field has not escaped the financial uncertainty plaguing the rest of the world. Even before COVID-19 changed nearly everything, firms were already lamenting the ‘death of the billable hour.’ Some might say that billable hours, while low risk to firms, are not a good model for clients—especially those of average or modest means.
Some continue to debate the need for Litigation Finance. Yet every day we see more examples of the practice working as it should, increasing access to justice for those who might not otherwise have it. One such case involves Nanoco, a business associated with Manchester University. The small business recently filed a patent infringement case against tech giant Samsung.
