Global law firm behind $70 billion BHP mining disaster claim launch Sydney office

The lawyers behind a multibillion-dollar class action against BHP over the fatal 2015 Samarco dam disaster in Brazil, are opening an office in Sydney.

Global law firm Pogust Goodhead has corporates who fail to uphold their social and environmental responsibilities in its sights as it establishes an Australian presence with the opening of an office in Sydney’s legal district at 126 Phillip Street.

Pogust Goodhead is bringing a case against BHP, the world’s biggest miner, on behalf of over 700,000 claimants in Brazil following the collapse of the Fundão Dam in 2015. The collapse killed 19 people and released 50 million metres of toxic waste, destroying entire villages and livelihoods. The case is the largest class action of its kind and is set to go to trial in London in October 2024.

The new office in Sydney is expected to serve as a base to launch new claims against Australian corporations who fail to uphold their obligations.

Global Managing Partner Tom Goodhead said:

“We are delighted to be launching in Sydney. We are establishing a base in BHP’s backyard to ensure we explore every avenue in our fight for justice for the victims of one the world’s worst environmental disasters.”

“The mining sector in Australia plays a vital role in ensuring the availability of increasingly important rare and critical minerals, which makes it a major driver of economic growth and wellbeing. However, with this enormous wealth and influence comes a responsibility to the communities in which they operate – a responsibility premised on basic decency and fairness.”

“We are investigating a number of new cases against Australian multinational corporations, such as BHP, in which their commitment to this responsibility has been seriously thrown into question. With the launch of our Sydney office, we are putting Australian corporations on notice that we are ready to hold them to account.”

Described as ‘the first legal unicorn’, Pogust Goodhead, has seen huge growth in just over five years and now represents over three million clients worldwide. It is also accumulating a sizeable war chest, enabling it to confront some of the world’s largest corporate entities on behalf of its clients which include some of the most disadvantaged people on the planet.

In October last year the firm announced a landmark US$550m investment partnership with US-based emerging markets investment manager Gramercy. The firm employs over 700 staff and has offices in London, Rio, Edinburgh, Amsterdam, Miami, Philadelphia and now Sydney.

The Sydney office will be headed up by Partner | Head of Australia, Amie Crichton and Partner, Joshua Carton. With over 15 years’ experience, including across top-tier Australian and global firms, Amie is a highly sought after disputes specialist and commercial litigator. She has a proven track record in defending and prosecuting claims across the consumer, financial services, technology, resources and infrastructure sectors, with a primary focus on complex multi-party disputes and high-profile class actions. Amie is joined in the partnership by long standing colleague and complex commercial disputes and class action specialist, Joshua Carton

Partner | Head of Australia Amie Crichton said:

“Pogust Goodhead’s arrival in Australia is more than just another player in the legal field. What sets the firm apart is its global reputation and extensive network. In bringing their resources, knowledge and invaluable strategic partnerships to Australian shores, the firm is empowering individuals to seek justice on an unprecedented scale. This launch also signifies the firm’s recognition of Australia’s importance as a hub for representative proceedings and underscores its confidence in the country’s sophisticated class action framework. Pogust Goodhead is poised to leave an incredible mark, cementing their status as trailblazers in the pursuit of justice.”

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Manolete Partners Releases Half-Year Results for the Six Months Ended 30 September 2024

By Harry Moran |

Manolete (AIM:MANO), the leading UK-listed insolvency litigation financing company, today announces its unaudited results for the six months ended 30 September 2024. 

Steven Cooklin, Chief Executive Officer, commented: 

“These are a strong set of results, particularly in terms of organic cash generation. In this six-month period, gross cash collected rose 63% to a new record at £14.3m. That strong organic cash generation comfortably covered all cash operating costs, as well as all cash costs of financing the ongoing portfolio of 413 live cases, enabling Manolete to reduce net debt by £1.25m to £11.9m as at 30 September 2024. 

As a consequence of Manolete completing a record number of 137 case completions, realised revenues rose by 60% to a further record high of £15m. That is a strong indicator of further, and similarly high levels, of near-term future cash generation. A record pipeline of 437 new case investment opportunities were received in this latest six month trading period, underpinning the further strong growth prospects for the business. 

The record £14.3.m gross cash was collected from 253 separate completed cases, highlighting the highly granular and diversified profile of Manolete’s income stream. 

Manolete has generated a Compound Average Growth Rate of 39% in gross cash receipts over the last five H1 trading periods: from H1 FY20 up to and including the current H1 FY25. The resilience of the Manolete business model, even after the extraordinary pressures presented by the extended Covid period, is now clear to see. 

This generated net cash income of £7.6m in H1 FY25 (after payment of all legal costs and all payments made to the numerous insolvent estates on those completed cases), an increase of 66% over the comparative six-month period for the prior year. Net cash income not only exceeded by £4.5m all the cash overheads required to run the Company, it also exceeded all the costs of running Manolete’s ongoing 413 cases, including the 126 new case investments made in H1 FY25. 

The Company recorded its highest ever realised revenues for H1 FY25 of £15.0m, exceeding H1 FY24 by 60%. On average, Manolete receives all the cash owed to it by the defendants of completed cases within approximately 12 months of the cases being legally completed. This impressive 60% rise in realised revenues therefore provides good near-term visibility for a continuation of Manolete’s strong, and well-established, track record of organic, operational cash generation. 

New case investment opportunities arise daily from our wide-ranging, proprietary, UK referral network of insolvency practitioner firms and specialist insolvency and restructuring solicitor practices. We are delighted to report that the referrals for H1 FY25 reached a new H1 company record of 437. A 27% higher volume than in H1 FY24, which was itself a new record for the Company this time last year. That points to a very healthy pipeline as we move forward into the second half of the trading year.” 

Financial highlights: 

  • Total revenues increased by 28% to £14.4m from H1 FY24 (£11.2m) as a result of the outstanding delivery of realised revenues generated in the six months to 30th September 2024.
    • Realised revenues achieved a record level of £15.0m in H1 FY25, a notable increase of 60% on H1 FY24 (£9.4m). This provides good visibility of near-term further strong cash generation, as on average Manolete collects all cash on settled cases within approximately 12 months of the legal settlement of those cases
    • Unrealised revenue in H1 FY25 was £(633k) compared to £1.8m for the comparative H1 FY24. This was due to: (1) the record number of 137 case completions in H1 FY25, which resulted in a beneficial movement from Unrealised revenues to Realised revenues; and (2) the current lower average fair value of new case investments made relative to the higher fair value of the completed cases. The latter point also explains the main reason for the marginally lower gross profit reported of £4.4m in this period, H1 FY25, compared to £5.0m in H1 FY24. 
  • EBIT for H1 FY25 was £0.7m compared to H1 FY24 of £1.6m. As well as the reduced Gross profit contribution explained above, staff costs increased by £165k to £2.3m and based on the standard formula used by the Company to calculate Expected Credit Losses, (“ECL”), generated a charge of £140k (H1 3 FY24: £nil) due to trade debtors rising to £26.8m as at 30 September 2024, compared to £21.7m as at 30 September 2023. The trade debtor increase was driven by the outstanding record level of £15.0m Realised revenues achieved in H1 FY25.
  • Loss Before Tax was (£0.2m) compared to a Profit Before Tax of £0.9m in H1 FY24, due to the above factors together with a lower corporation tax charge being largely offset by higher interest costs. 
  • Basic earnings per share (0.5) pence (H1 FY24: 1.4 pence).
  • Gross cash generated from completed cases increased 63% to £14.3m in the 6 months to 30 September 2024 (H1 FY24: £8.7m). 5-year H1 CAGR: 39%.
  • Cash income from completed cases after payments of all legal costs and payments to Insolvent Estates rose by 66% to £7.6m (H1 FY24: £4.6m). 5-year H1 CAGR: 46%.
  • Net cashflow after all operating costs but before new case investments rose by 193% to £4.5m (H1 FY24: £1.5m). 5-year H1 CAGR: 126%.
  • Net assets as at 30 September 2024 were £40.5m (H1 FY24: £39.8m). Net debt was reduced to £11.9m and comprises borrowings of £12.5m, offset by cash balances of £0.6m. (Net debt as 31 March 2024 was £12.3m.)
  • £5m of the £17.5m HSBC Revolving Credit Facility remains available for use, as at 30 September 2024. That figure does not take into account the Company’s available cash balances referred to above.

Operational highlights:

  • Ongoing delivery of record realised returns: 137 case completions in H1 FY25 representing a 18% increase (116 case realisations in H1 FY24), generating gross settlement proceeds receivable of £13.9m for H1 FY25, which is 51% higher than the H1 FY24 figure of £9.2m. This very strong increase in case settlements provides visibility for further high levels of cash income, as it takes the Company, on average, around 12 months to collect in all cash from previously completed cases.
  • The average realised revenue per completed case (“ARRCC”) for H1 FY25 was £109k, compared to the ARRCC of £81k for H1 FY24. That 35% increase in ARRCC is an important and an encouraging Key Performance Indicator for the Company. Before the onset and impact of the Covid pandemic in 2020, the Company was achieving an ARRCC of approximately £200k. Progress back to that ARRCC level, together with the Company maintaining its recent high case acquisition and case completion volumes, would lead to a material transformation of Company profitability.
  • The 137 cases completed in H1 FY25 had an average case duration of 15.7 months. This was higher than the average case duration of 11.5 months for the 118 cases completed in H1 FY24, because in H1 FY25 Manolete was able to complete a relatively higher number of older cases, as evidenced by the Vintages Table below.
  • Average case duration across Manolete’s full lifetime portfolio of 1,064 completed cases, as at 30 September 2024 was 13.3 months (H1 FY24: 12.7 months).
  • Excluding the Barclays Bounce Back Loan (“BBL”) pilot cases, new case investments remained at historically elevated levels of 126 for H1 FY25 (H1 FY24: 146 new case investments).
  • New case enquiries (again excluding just two Barclays BBL pilot cases from the H1 FY24 figure) achieved another new Company record of 437 in H1 FY25, 27% higher than the H1 FY24 figure of 343. This excellent KPI is a strong indicator of future business performance and activity levels.
  • Stable portfolio of live cases: 413 in progress as at 30 September 2024 (417 as at 30 September 2023) which includes 35 live BBLs.
  • Excluding the Truck Cartel cases, all vintages up to and including the 2019 vintage have now been fully, and legally completed. Only one case remains ongoing in the 2020 vintage. 72% of the Company’s live cases have been signed in the last 18 months.
  • The Truck Cartel cases continue to progress well. As previously reported, settlement discussions, to varying degrees of progress, continue with a number of Defendant manufacturers. Further updates will be provided as concrete outcomes emerge.
  • The Company awaits the appointment of the new Labour Government’s Covid Corruption Commissioner and hopes that appointment will set the clear direction of any further potential material involvement for Manolete in the Government’s BBL recovery programme.
  • The Board proposes no interim dividend for H1 FY25 (H1 FY24: £nil).

The full report of Manolete’s half-year results can be read here.

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Theo Ai Announces $2.2M Pre-Seed Funding to Bring Predictive Analytics to the Legal Industry

By Harry Moran |

Theo Ai, the first predictive AI platform for litigation, announces $2.2MM in pre-seed funding. The round was co-led by NextView and nvp capital with participation from Ripple Ventures, Beat Ventures, and SCVC Fund. Using a proprietary data model and prediction engine, Theo Ai helps legal professionals make educated decisions about the likely outcome of cases. The funding will be used to further enhance their prediction engine, expand practice categories, and accelerate customer growth.

With over 275,000 new lawsuits filed each day, choosing which cases to take is essential for the legal industry. The average mid-sized firm reviews roughly 650 cases per year, which can take anywhere between 7 to 30 days to manually review. With Theo Ai, that time is compressed into seconds - allowing legal teams to cover more ground and focus on winning cases. Led by Alex Alben (UCLA Law Professor and Tech Executive), Patrick Ip (ex-Google and UCLA Law MLS) and Tiago Luchini (4x CTO/Founder), Theo Ai is the first predictive tool to fully leverage the power of AI. Theo Ai enables customers to identify and predict cases with the highest odds of success, uncover cases they might have missed, and access case summaries and key financial drivers all in a single offering.

"With backgrounds in both law and tech, Theo Ai's leadership team understands the complexities legal firms face and how to leverage advanced technology to address those challenges," says Co-Founder and Partner at NextView, Rob Go. "Their experience allows them to build a platform that addresses the needs of the everyday economy and truly reflects the nuances of legal decision-making, giving customers a significant edge in strategy and case outcomes."

"The legal industry is undergoing significant change and this technology will accelerate the drive towards efficiency and prediction analysis. Theo Ai is perfectly timed to address the increasing demand for next-gen B2B tools," says Dan Borok, Managing Partner at nvp. "With a stellar team that has decades of expertise in both law and tech, Theo Ai is delivering the right solution when firms need it."

"When the Ripple Ventures team first met the Theo Ai team, it was clear they had a deep understanding of customer workflows and pain points, rooted in their extensive legal expertise. Their vision for transforming the legacy legal industry with AI, combined with a proven track record as repeat founders, gave us strong confidence in their ability to execute," says Dom Lau, Partner at Ripple Ventures.

The ability to accurately predict a case's outcome is a game changer for legal professionals. By analyzing similar cases and likely arguments, Theo Ai's data model estimates the probability of winning a case, in addition to predicting the estimated award. Early users of Theo Ai found that the platform's algorithms verified the results of their underwriting and due diligence teams. With Theo Ai, firms have access to a data-driven pipeline using real-time analytics and predictive modeling as new facts and evidence emerge.

To learn more and join the waitlist for Theo Ai, visit: https://theoai.ai/#product

About Theo Ai
Theo Ai is the first predictive engine designed by technical and legal professionals to forecast the outcome of legal disputes. Its AI models are trained on historical case data and incorporate real-time analytics with predictive modeling to deliver accurate and actionable insights. Theo Ai is meeting the most critical need for legal professionals - offering accurate case outcome predictions, backed by data. To learn more and join the waitlist for Theo Ai, visit: https://theoai.ai/#product

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International Legal Finance Association Welcomes First Global Director of Growth and Membership Engagement

The International Legal Finance Association (ILFA) today announced the recruitment of Rupert Cunningham as Global Director of Growth and Membership Engagement. In this role, Rupert will work to drive ILFA’s membership growth and retention, provide leadership and management to serve ILFA members, and promote global education and awareness of litigation finance.

Prior to joining ILFA, Rupert served as a Special Adviser to UK Justice Secretary and Lord Chancellor Alex Chalk KC. He advised the Lord Chancellor on courts, sentencing, and legal services policy and shepherded legislation to support the legal finance industry in England and Wales. Before his work in government, Rupert worked as a public affairs and policy consultant, helping build coalitions of clients and trade associations to achieve positive political outcomes.

“We are thrilled to announce the addition of Rupert Cunningham,” said Shannon Campagna, ILFA’s interim Executive Director. “Rupert’s experience working with membership and trade associations to build coalitions across industries and in the UK’s Ministry of Justice makes him uniquely suited for leading ILFA’s global growth and engagement.”

“I am delighted to be joining ILFA, the leading global organization advocating for the legal finance sector,” Rupert Cunningham said. “When I was in the Ministry of Justice, I saw firsthand how important third-party funding is for promoting access to justice, so I am glad to be supporting the industry by expanding ILFA’s membership and helping members amplify their voice with industry stakeholders and policymakers worldwide.” 

Rupert’s appointment demonstrates ILFA’s commitment to expanding legal finance industry representation across continents and extending the industry’s reach with legislative, regulatory, and judicial policymakers worldwide.

About the International Legal Finance Association   

The International Legal Finance Association (ILFA) represents the global commercial legal finance community, and its mission is to engage, educate, and influence legislative, regulatory, and judicial landscapes as the voice of the commercial legal finance industry. It is the only global association of commercial legal finance companies and is an independent, non-profit trade association promoting the highest standards of operation and service for the commercial legal finance sector. ILFA has local chapter representation around the world.  

For more information, visit www.ilfa.com and find us on LinkedIn and X @ILFA_Official.

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