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

Given that the stock market has fallen almost 20% in the last 30 days, securities claims are expected to surge. The need for increased operational funds and asset liquidity makes Litigation Finance an attractive option for companies facing such claims.

It’s clear that insurers and policyholders are keeping a close eye on the law as it pertains to pandemics. Clauses in contracts specifically related to viral or biological agents will take center stage in new lawsuits that are sure to spring up after COVID-19 precautions have taken a heavy toll on businesses.

Convicted of fraud in 2007, Alexander Tugushev is now suing a former business partner. The case is being funded by 17 Arm, a firm advised by a former prosecutor and former foreign secretary, and is raising questions due to the high-profile nature of those involved, and because of the use of Litigation Finance.

It’s no secret that Litigation Finance is a profitable and growing industry around the world. With Australia, Asia, Europe and North America all enjoying the fruits of lit fin’s labor, is it time for Africa to get in on the act?

In a typical scenario, contingency cases involve Davids v. Goliaths. That is to say, usually smaller law firms are the ones who take cases on contingency. Established firms are less likely to take cases on a contingency basis, but that may be changing—thanks in part to litigation funding.

Third-party litigation funding is becoming a natural response to the economic turmoil caused by COVID-19. Firms beset by financial anxiety are looking to keep balance sheets balanced, and funding is an excellent route.

The growing influence of litigation finance in the global legal environment has led to increased regulation and certain ethical concerns. That said, funders, clients, and legal professionals are all feeling optimistic about the impact of lit fin in the future.  In addition, new markets are opening up in Asia-Pacific and elsewhere. 

Staggering data has emerged in the class action suit against Southern Response, showing that the liability of the New Zealand federal government could surpass $400MM. This estimate is based on the nearly 3,000 plaintiffs subjected to unlawful behavior by Southern Response—who had assumed responsibility for claims sold by private insurer AMI, which was liquidated in 2012. 

A new report from Wolverhampton University Professor Peter Walton shows a 50% increase in the UK insolvency litigation market over the last four years. Given the financial stress caused by COVID-19, we can only assume that the increase in insolvency litigation will continue apace. 

Burford Capital, a worldwide leader in legal finance, has announced the development of a global association for commercial legal finance. Expectations are that it will be finalized before summer is out.

It’s rare to see rulings that specifically address the finer points of litigation funding and remuneration therein. In February of this year, however, a pair of separate rulings have garnered mass attention. 

The Coronavirus is impacting every industry, not to mention affecting all of us personally. This leads to economic anxiety on a massive scale. It can also mean that the sizable recoveries some firms are counting on may not be viable once this crisis is over—and for some time afterwards.  With everyone scrambling to stay afloat, Ted Farrell of Litigation Funding Advisers LLC has some thoughts.

2019 was a year of change and growth in the legal field. Monetization was of particular interest to in-house legal teams. This practice allows firms to de-risk portfolios and exert greater control over receivables by essentially converting an impending recovery into working capital.  

Many law firms and even in-house counsel are feeling the pinch from court closures and delays due to the COVID-19 outbreak. Depending on how long this disruption lasts, many legal entities may find themselves scrambling to fund in-progress claims or take on new ones. As the risk of insolvency grows, maintaining healthy balance sheets is of the essence.