Community Spotlight: Richard Culberson, CEO, VoiceNation and Moneypenny North America

An opt-out competition settlement in the UK has hit an unusual snag: what to do with almost £10M in unclaimed passenger damages?

An article in Legal Futures recounts that the Competition Appeal Tribunal has invited submissions from claimant firm Charles Lyndon, litigation funder Woodsford, ATE insurers and the Access to Justice Foundation after fewer than one percent of eligible rail travellers filed claims against Stagecoach South West Trains. The 2024 deal ring-fenced £4.75M for costs up-front and allowed the class representative, consumer campaigner Justin Gutmann, to ask the Tribunal to re-allocate any leftover pot.

With the September entitlement hearing looming, Charles Lyndon is urging a £5–6M donation to the justice charity, while Woodsford argues its non-recourse investment entitles it to more of the residue. The CAT signaled it will weigh whether the outcome “predominantly” benefits stakeholders rather than class members—a pointed reminder that third-party funding returns remain subject to public-interest scrutiny even post-settlement.

Although smaller in dollar terms than the mammoth interchange-fee litigation, the dispute underscores funders’ growing role in allocation fights once the merits are resolved. How the CAT balances cost recovery and funder profit could set an influential template for other UK collective actions—especially as new rules and the PACCAR fallout push funders toward multiple-based fee structures with capped upside.

Litigation financiers have narrowly sidestepped what many saw as an existential threat: a 40 percent federal tax on funding profits that had been quietly tucked into the Senate’s sprawling reconciliation bill. While the proposal’s defeat means the industry will remain in tact, the close call has exposed deep fissures in an industry still fighting for political legitimacy.

An article in Bloomberg recounts how the International Legal Finance Association (ILFA) scrambled a last-minute “war room,” tapping GOP fixer Pete Kirkham and leaning on senators Ron Wyden and Mike Lee to invoke the Byrd Rule and strip the revenue provision before a floor vote. The measure, authored by Sen. Thom Tillis, would have taxed funders at the top individual rate (37%) plus an additional 3.8%, barred loss-netting and lifted shields for tax-exempt investors—changes projected to raise $3.5 billion over a decade.

ILFA’s rapid mobilization underscored the piecemeal nature of the sector’s advocacy. Omni Bridgeway portfolio manager Gian Kull lamented that funders “are not one unified entity, like private equity,” while Parker Poe partner Michael Kelley called the bill “a rifle shot right to the heart.” Yet not every member chipped in for the fight, reviving free-rider complaints in an a highly fragmented industry. Meanwhile, opponents led by the U.S. Chamber of Commerce—and vocal corporates Johnson & Johnson, Exxon Mobil and Liberty Mutual—signaled they will pivot to state legislatures and renewed transparency drives.

Writing on LinkedIn, Peter Petyt, founder of 4 Rivers Legal underscored the urgency of the current moment: "This moment calls for more than celebration — it demands leadership. The industry must come together to educate, advocate, and engage with lawmakers and the public in a constructive way."

For funders, the episode is a stark reminder that large corporations are gunning for this industry's very existence. Expect beefed-up lobbying budgets, accelerated ILFA recruitment and louder messaging on consumer access to justice as the industry braces for the next volley in what is fast becoming a multi-front policy war on third-party capital.