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Case Developments Commercial

Disclosure in the Spotlight for Patent Cases with Third-Party Funding

The topic of disclosure in litigation where there is the presence of third-party funding has been a hot topic in several jurisdictions, with defendants strongly arguing that there needs to be an increased level of transparency when it comes to litigation funding.

In a recent development, outlined in The National Law Review, a judge in the District of Delaware has ruled that parties in patent litigation cases must comply with enhanced Rule 7.1 disclosures, specifically those required around funding arrangements. Chief Judge Connolly, in the case of Longbeam Technologies v. Amazon.com, stated concerns around the plaintiff’s lack of disclosure for its third-party funding and stayed the case to allow for the defendant to pursue discovery on Longbeam’s litigation funding.

This latest example of a court mandating further disclosure around third-party funding agreements is unlikely to be the last, and as the use of litigation funding increases around the globe, both funders and litigants should keep a close eye on whether courts are mandating a heightened degree of transparency.

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Case Developments Comercial

Burford Fights Argentina’s YPF Stay Bid in London

By John Freund |

Minority YPF shareholders Petersen Energia and Eton Park, bankrolled by Burford Capital, are chasing a U.S. $17 billion New York judgment against Argentina into the High Court of England and Wales. Buenos Aires has asked the court to halt enforcement while it appeals in the United States, arguing it holds no attachable UK assets and that creditors will suffer no prejudice.

Reuters details the claimants’ response: if a pause is granted, Argentina should post £2 billion security, roughly 10 percent of the outstanding award, to blunt daily interest accrual of about U.S. $2.5 million. The article underscores funders’ growing role in cross-border sovereign enforcement; Burford’s capital has already fueled a decade-long campaign spanning New York, Madrid and now London.

A London-court showdown would illustrate how litigation finance converts paper victories into real money, even against resistant sovereigns. A security order could tighten Argentina’s negotiating window and validate funders’ appetite for high-duration, multinational enforcement plays. Conversely, a lengthy stay with no bond would spotlight the risk that political defendants can still out-wait private capital—raising questions about how funders price sovereign risk going forward.

Case Developments Comercial

Jefferies, Oppenheimer Target LA Wildfire Mass-Tort Funding

By John Freund |

The January wildfires that tore through greater Los Angeles have created a litigation wave—and a financing arms race. Plaintiffs’ firms face eight-figure discovery and expert-witness tabs while waiting years for contingency fees, so investment banks are stepping in. Jefferies and Oppenheimer are marketing credit lines and fee-purchase deals that could supply tens of millions of dollars up-front, collateralised by eventual recoveries against Southern California Edison and the Los Angeles Department of Water & Power.

Insurance Journal reports that the two banks are circulating pitch decks boasting wildfire-finance experience from the 2019 PG&E saga and promising annualised returns north of 20 percent. The publication notes that some of the 50-plus steering-committee firms have rebuffed outside cash, wary of settlement pressure, but many acknowledge that high-volume tort work is impossible without external capital. Funders, meanwhile, recognise a rare chance to buy into potentially multibillion-dollar fee streams—even if competition is already pushing pricing below the multiples seen in the PG&E deals.

Whether the influx of Wall Street money boosts access to justice or merely fattens lender margins will shape regulatory debates now brewing in Sacramento and Washington. California ethics rules mandate client disclosure, and a proposed federal excise tax threatens to raise funders’ cost of capital. The Los Angeles fire docket therefore doubles as a stress test: can mass-tort finance thrive under closer scrutiny and thinner spreads, or will rising compliance costs cool what has become one of litigation finance’s hottest niches?

Case Developments Comercial

Burford Counters Tyson Foods Over Chicken-Price Settlement Fight

By John Freund |

Burford Capital has moved to knock out Tyson Foods’ interference lawsuit, telling an Illinois federal judge that the meat-packing giant—not the world’s largest litigation financier—scuttled talks to resolve sprawling chicken price-fixing claims brought by food distributor Sysco. In a motion to dismiss filed this week, Burford branded Tyson’s allegations of settlement meddling as “threadbare” speculation aimed at diverting attention from the underlying antitrust accusations.

An article in Reuters details Tyson’s April complaint accusing Burford of trying to “co-opt the legal system” by blocking a deal Sysco had weighed. Tyson says the funder leveraged its $140 million financing stake to push for a richer payout, impeding Sysco’s autonomy in the long-running poultry cartel litigation.

Burford’s filing counters that its 2019 funding agreement explicitly allows the financier to participate in settlement talks and notes Tyson rejected Sysco’s last offer back in 2021. After Burford thwarted what it viewed as sub-par settlements, Sysco transferred its claims to Burford affiliate Carina Ventures, removing the food-service giant from the case while preserving its potential recovery.

The skirmish comes as congressional Republicans revive proposals to tax litigation-finance proceeds at nearly 41%, underscoring a season of heightened scrutiny over how much influence funders wield in antitrust and class actions. Burford, which has repeatedly defended its model as bolstering access to justice, says Tyson’s suit would chill capital-backed claims by re-writing freely negotiated contracts after the fact.

For funders, the outcome may clarify how far investment contracts can reach into settlement strategy—especially when the underlying defendant wants a bargain exit. If Burford prevails, expect financiers to lean harder on contractual rights; if Tyson scores traction, future deals could feature stricter carve-outs to avoid similar challenges.