The UK's Competition Appeal Tribunal has certified a £1.7 billion opt-out collective action against Microsoft, even after acknowledging "a degree of uncertainty" surrounding the case's litigation funder. The claim, brought by digital markets expert Dr Maria Luisa Stasi on behalf of approximately 59,000 businesses, alleges Microsoft overcharged customers running Windows Server on rival cloud platforms.

As reported by Legal Futures, the Tribunal heard that funder Litigation Capital Management (LCM) has access to a $75 million facility from Canadian investment firm Northleaf Capital Partners, renewed in December 2024 with the potential to double in size. Roughly 62% of the £14 million case budget is drawn from third-party capital under management — outside any direct exposure to LCM's balance sheet — leaving £5.3 million tied to LCM itself.

Microsoft argued the certification application should be dismissed in part because of questions over LCM's solvency. The CAT, chaired by Mr Justice Adam Johnson, weighed LCM's £41 million in listed assets alongside the Northleaf facility and concluded there was a "reasonable expectation of funding." The panel further noted that, even if LCM's portion fell short, the present state of the litigation funding market would likely make alternative capital available for an already-certified claim.

Scott+Scott, the proposed class representative's solicitors, also clarified the conditions under which LCM could terminate the funding agreement — confirming any merit-based termination decision must rest on independent legal and expert advice. The CAT ruled that the proposed funding and governance arrangements supported certification on an opt-out basis.

Fortress Investment Group has expanded its push into US legal services with a new equity investment in an Arizona personal injury law firm, structured through a financing arrangement designed to bring institutional capital onto a plaintiff-side platform. The transaction marks another step by the alternative asset manager into ownership-adjacent positions in a market where direct non-lawyer investment in law firms remains tightly restricted.

As reported by the Financial Times, the deal uses a financing structure that allows Fortress to take economic exposure to firm performance without breaching state rules barring non-lawyer ownership of legal practices. Such structures — often built around management service organizations and similar vehicles — have become a focal point for litigation finance investors seeking durable, recurring exposure to plaintiff-side caseloads rather than single-case funding alone.

Fortress has been one of the most active alternative managers in the US litigation finance and legal services market, deploying capital across single-case funding, portfolio facilities, and law firm financing transactions. Recent moves by the firm reflect a broader trend of institutional capital migrating toward law firm enterprise value, particularly in plaintiff-side personal injury practices, where predictable case volumes and settlement-driven revenue streams attract yield-seeking investors.

The transaction will likely intensify scrutiny of the legal and regulatory architecture governing non-lawyer participation in US law firms. Arizona is the only state to formally permit alternative business structures, but financing-led arrangements remain a workaround in other jurisdictions — and a flashpoint for the bar groups, plaintiffs' associations, and tort reform advocates currently debating disclosure and ownership rules.