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2271 Articles

Litigation Finance Data Suggests a Need for Post-Settlement Regulation

By John Freund |

Non-recourse funding is the backbone of the Litigation Finance model. It’s what exempts the practice from usury laws and allows funders to charge higher interest rates than other lenders. An as-yet-unpublished article suggests that funders actually made higher profits from individual car accident claims than from mass tort cases. That is to say, cases where a small number of people are injured or killed made more money for funders than large cases with multiple impacted parties.

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How a Rise in ‘Nuclear Verdicts’ Impacts an Industry

By John Freund |

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.

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Institutional Ownership at Burford Capital

By John Freund |

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.  

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COVID Brings Tech-Savvy In-House Lawyers to the Forefront

By John Freund |

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.

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Will the ABA’s Litigation Funding Guidelines Do More Harm Than Good?

By John Freund |

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.  

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Taking a Look at Security for Costs

By John Freund |

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. 

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How Did a $440K Law Firm Loan Balloon to $18MM?

By John Freund |

Sean Callagy’s law firm, Callagy Law, has been involved in several contentious lawsuits in recent months, in part due to defaulting on loans from Legal Capital Group. The LCG agreement was made with George Prussin, an old friend of Callagy. Their friendship fell apart after several professional differences that became litigious.

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Class Action Accuses Banks of $500MM in Overcharges

By John Freund |

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.

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Litigation Finance—High Risk, High Reward

By John Freund |

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.

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Closing the Gender Gap in Law

By John Freund |

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.

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BRYANT PARK CAPITAL & MULTI FUNDING, INC SECURE A $30 MILLION DOLLAR SENIOR DEBT FACILITY

By John Freund |

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.

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How Litigation Finance Can Benefit Cases Mid-Litigation

By John Freund |

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?

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Bangladeshi Economy Attracts Litigation Funders

By John Freund |

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? 

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Law Firms Utilize Lit Fin to Meet Obligations During COVID

By John Freund |

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.

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Can Litigation Funding Mitigate the ‘Death of the Billable Hour?’

By John Freund |

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.

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Nanoco Signs Funding Deal in Case Against Samsung

By John Freund |

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.

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Takeaways from the 2020 Litigation Finance Survey Report

By John Freund |

Across the board, Litigation Finance has become a powerhouse industry—one that has shown remarkable growth since its inception just over a decade ago. Since 2017, the industry has seen at least a 10% annualized increase in requests for funding. This year, a 30% increase accompanies a greater acceptance of the practice in the legal world.

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Legalist Founder Explains Unique Funding Model

By John Freund |

When we think of Litigation Finance, our impulse might be to envision well-capitalized funders assisting large companies. The founder and CEO of Legalist, Eva Shang, sees the business differently. Her model is one of David v. Goliaths—helping the little guys that other funders may overlook.

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Is the Trucking Insurance Industry Becoming Toxic?

By John Freund |

Trucking companies, insurers, and employees have been having a rough couple of years. Tax law changes have cheated drivers out of their per diem, making their taxes skyrocket. Insurance rates climb ever higher as large payouts cripple insurers. Some have placed the blame on Litigation Finance, claiming that enabling plaintiffs has had a negative impact on insurers. But is that fair?

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Scottish Courts Feeling the Dearth of Litigation Funders

By John Freund |

Scotland, like much of the world, is bracing for a spike in litigation related to the Coronavirus. Business closures, insurance disputes, non-payment of rent, and other common types of litigation are expected to rise at least three-fold. Once courts are up and running again, the backlog of cases and filings is expected to take 1-3 years to completely clear.

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