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Key Takeaways From LFJ’s Podcast With Erik Bomans, CEO and Executive Board Member of Deminor

May 31, 2022

Key Takeaways From LFJ’s Podcast With Erik Bomans, CEO and Executive Board Member of Deminor

On the latest episode of the LFJ Podcast, we spoke with Erik Bomans, CEO and Executive Board Member of Deminor. Mr. Bomans discussed recent developments and trends in litigation funding in continental Europe, including what the total addressable market looks like and how that is expected to grow over time, how country-specific jurisdictions are differentiated, some of the main barriers to investing in litigation funding in Europe, and how the regulatory environment across the continent can actually be a benefit to funders. Below are some key takeaways from the conversation, which can be found in full here. LFJ: How big is the European market for funding? How do you assess the total addressable market?  EB: We have conducted our own research and have estimated the total addressable market in Europe at $1.8B, and that includes the UK. It is a small market, we estimate that it is 16% of the total addressable market of litigation funding.  By comparison, we estimate that the total addressable market in the US is $9B. That is nearly 5x bigger than the entire European market.   When we say the total addressable market, we mean the potential for litigation funding. We get to these numbers by looking at the value of the litigation market, and we apply a percentage which is the penetration rate in that specific market.  LFJ: In terms of a country specific breakdown, I imagine most of the activity happening in Germany and France. Your company Deminor has offices in Belgium, Luxembourg and Milan, so there must be a lot of action in these other jurisdictions as well. Is that the case, is there a lot of activity across Europe?  EB: We are active in most European countries. The top countries without a doubt are the UK and Germany.  We estimate the total addressable market in the UK at $800M. The other $1B is spread out over continental Europe. With Germany definitely taking the biggest part, nearly ⅓. . The Netherlands is the third most active country in Europe.  LFJ: What are some of the barriers to investing in the litigation funding market? Can you share some challenges funders find in this market?  EB: There are pitfalls, Europe is a highly regulated market in general. Litigation funding contracts come with mandatory rules with highly regulated rules such as consumer protection. In Germany and France, legal advice can only be provided by practicing lawyers.  One of the areas in Europe where litigation funding has been scrutinized most in Europe is antitrust cases, where some funders have used the assignment level to structure their litigation funding agreements.   LFJ: How does the EU’s regulatory environment provide opportunities for litigation service providers? I want to ask you specifically about Deminor. How does the regulatory environment provide your business with growth opportunities? EB: Antitrust is the next big area of growth, with the UK and Germany taking the lead. With Italy and Spain becoming active in this area as well. Litigation finance is a risky business, but there are new areas of growth in new emerging areas of litigation funding. Definitely, there are new  opportunities there for litigation funders. But it will be important for litigation funders to pick the right cases.  LFJ: What are your predictions for how the EU litigation funding market develops over the next few years? EB: Litigation funding is strongly growing here in Europe. The business is volatile, and no matter how much you diversify, returns may always be volatile.    

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Commercial

WinJustice Sees MENA Litigation Funding Go Mainstream by 2026

By John Freund |

Litigation funding in the Middle East and North Africa is expected to move decisively into the mainstream by 2026, as regulatory clarity, arbitration reform, and growing commercial awareness reshape how disputes are financed across the region. What was once viewed as a niche or unfamiliar concept is increasingly being recognized as a practical tool for managing risk, unlocking claims value, and improving access to justice in complex commercial matters.

An article in WinJustice Knowledge Hub outlines how litigation funding is evolving into a recognized asset class within the MENA legal ecosystem. The piece highlights how improved regulatory environments and more sophisticated arbitration frameworks are helping normalize third-party funding, particularly in international arbitration and cross-border disputes. Claims are increasingly assessed not simply as legal battles, but as financial assets that can be monetized and strategically managed. This shift is especially relevant for businesses facing capital constraints or seeking to preserve cash while pursuing high-value disputes.

The article also emphasizes the role of localized expertise in accelerating adoption. WinJustice positions itself as a regional player focused on aligning international funding practices with local legal cultures, court systems, and arbitration centers. By working closely with regional law firms and dispute resolution institutions, funders are helping bridge the gap between global capital and local claimants. Insolvency-related disputes and asset recovery cases are identified as particular areas of growth, reflecting broader economic and restructuring trends across the region.

As litigation funding becomes more familiar to courts, counsel, and corporate clients, the MENA market appears poised for accelerated growth. Increased competition among funders and greater sophistication among claimants may also lead to more standardized pricing and structures.

Commercial

Legal Firm Pogust Goodhead Flags Financial Uncertainty

By John Freund |

Pogust Goodhead, the high-profile claimant law firm behind a number of major group actions, has warned of material uncertainty over its ability to continue as a going concern after publishing long-overdue financial accounts. The disclosure adds another layer of scrutiny to a firm that has been at the centre of some of the largest and most complex funded claims currently working their way through the courts.

An article in City A.M. reports that Pogust Goodhead filed its accounts for the year ending December 31, 2022 well past the statutory deadline, with the documents including a statement from directors acknowledging significant financial uncertainty. According to the filing, the firm remains dependent on securing additional funding and successfully progressing large-scale litigation in order to meet its obligations as they fall due.

The accounts show that Pogust Goodhead continues to operate at a loss, reflecting the capital-intensive nature of large group actions that can take years to reach resolution. The firm has been involved in headline cases, including environmental and consumer claims, where substantial upfront legal costs are incurred long before any recovery is realised. Directors noted that delays, adverse rulings, or difficulties in accessing external capital could materially affect the firm’s financial position.

Despite these warnings, the firm stated that it is actively engaged with funders and other stakeholders and believes there is a reasonable prospect of obtaining sufficient support to continue operations. The accounts were prepared on a going concern basis, although auditors highlighted the uncertainty as a key area of emphasis rather than issuing a qualification.

The disclosure comes at a time when claimant firms and their funders are facing heightened scrutiny from regulators, politicians, and critics of litigation finance. Financial transparency, funding arrangements, and risk allocation between law firms and third-party capital providers are increasingly under the spotlight, particularly in the context of large, cross-border group actions.

Commercial Regulatory Issues

New Litigation Finance Trade Group Aims to Counter Hill Attacks

By John Freund |

A new trade association has launched with the goal of giving the litigation finance industry a stronger and more coordinated voice in Washington as lawmakers renew scrutiny of third-party funding. The American Civil Accountability Alliance has been formed to push back against what its founders describe as growing political and legislative hostility toward litigation finance, particularly on Capitol Hill.

An article in Bloomberg Law reports that the alliance was announced in early January by lawyers Erick Robinson and Charles Silver, who say the organization will focus on educating lawmakers and policymakers about the role litigation funding plays in promoting access to justice. According to the founders, third-party capital allows plaintiffs to pursue complex and costly claims that would otherwise be financially out of reach, helping to balance disparities between individual or corporate claimants and well-resourced defendants.

The group is launching at a time when litigation finance has faced an uptick in proposed regulation. In 2024, Senate legislation nearly imposed a steep tax on litigation funding profits, a proposal that funders warned would have severely damaged the industry had it passed. Although that measure was ultimately removed from a broader legislative package, additional proposals continue to circulate in Congress, including bills aimed at mandating disclosure of funding arrangements and restricting foreign investment in U.S. litigation.

The American Civil Accountability Alliance plans to position itself as an active counterweight to these efforts. The organization intends to hire a Washington-based lobbyist and expand its membership beyond funders to include law firms, litigators, and other stakeholders involved in the civil justice system. In doing so, it joins the International Legal Finance Association as one of the few organized advocacy groups representing the industry’s interests at the federal level.