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

Susanna Taylor is a Senior Investment Manager with LCM, and has been a commercial litigator for over 20 years. She answered a few questions from Tom Balmer, Director of Business Development at TLS.

The concept of Litigation Finance is a simple one. A plaintiff with a valid claim can seek third-party financing to take that claim to court. If the claim is successful, the funder gets an agreed-upon percentage of the award, or a multiple of the investment, or some combination thereof. If the claim isn’t successful, the funder walks away with nothing. That simple model has grown by leaps and bounds in recent years, and is now even more powerful given the pandemic and subsequent lockdown.

Did social media giants like Twitter, Google, and Facebook conspire to kill cryptocurrency in 2018? JPB Liberty, led by Andrew Hamilton, is filing a class action against social media. In a recent statement, Hamilton claimed the assertions would be “pretty easy” to prove.

Trucking-related lawsuits are on the rise, as are the potential awards. When a driver is negligent, the company pays the price. This has led to a comparable increase in insurance premiums and shipping costs, much of which is passed down to the consumer. What’s causing this? Some point the finger at Litigation Finance.

Residents of Mountain View complex in Mt Wellington, Auckland, are fed up. After a 10-year battle to get the owners to fix rampant leaks, a class action suit is being brought against building consultant Maynard Marks.

There’s a lot you can learn about a Litigation Finance company by looking at at its investors. Insider investment is common in firms that are newer and smaller, while more established players boast large institutions as their major shareholders.  

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.

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.

This past Thursday, July 30th, Litigation Finance Journal held a special digital conference covering the key issues facing the commercial funding industry.

COVID continues to impact the business world in ways few were ready for. The already evident spike in insolvency and bankruptcy litigation is expected to grow in the coming months and beyond.

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.

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, 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.

Contract disputes are expected to rise dramatically during and after COVID, causing disruptions across entire industries. How should commercial attorneys manage this in a way that helps clients, without overburdening…

In today’s pressing economic environment, it’s worth asking how GCs are dealing with the financial uncertainties of COVID-19? Fortunately, Burford Capital held a roundtable discussion on just this very topic. 

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?