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Key Takeaways from the LFJ Podcast with Mani Walia of Siltstone Capital

Key Takeaways from the LFJ Podcast with Mani Walia of Siltstone Capital

On the latest episode of the LFJ Podcast, we spoke with Mani Walia, Managing Director, General Counsel and Chief Compliance Officer and Siltstone Capital. Siltstone is a Houston-based alternative investment firm that invests in litigation finance claims, focusing on $500,000 to $5 million funding requests. Siltstone is also producing LitFinCon, the inaugural litigation finance conference in the Houston area, set to take place on March 2nd and 3rd of 2022. Below are some key takeaways from the discussion: Re: Siltstone’s focus areas Siltstone was founded nearly ten years ago in 2013 by a group of entrepreneurial, energy focused investors. Our team being entrepreneurial, was able to recruit folks with a very interesting set of backgrounds—not just energy sophistication on the nitty gritty of energy assets, but a legal team that understood that there might be value in claims. Through the course of our energy work, we discovered that there may be times that we have to evaluate cases and see if there is any merit to a potential case. And that’s where my addition to the team was something that shaped how we look at things. I have a litigation background and am honored to have learned how to case pick from one of the premiere litigation firms in the country. We had the impetus to start a litigation finance fund focused on energy because of the unique skills set that our team displays. So these two strategies are distinct, they have different bases and stakeholders—but there’s overlap. Re: Limited Partners and Structuring of Funds I’ll note that our funds are separate, so we have a set of funds that are tailored to the energy investor, and then a separate set of funds for those who might want exposure to litigation finance. We’re proud to have successfully closed our second such litigation finance fund in December of last year, 2021. Some folks want a little exposure in both areas, in particular because of the uniqueness of our team—the energy expertise and the focusing on finding value in energy litigation. Re: Types of Claims: Jurisdiction, Single case v Portfolio, Sizes? First, we’re really proud to have entered into a very collegial space. Most of the litigation finance brethren that we have have helped pave the way for entities like us. We’re guided by our experience, so we enjoy a laser-like focus with helping provide solutions only in the commercial context. We haven’t ventured outside into consumer finance or injury cases. We also, for the same reasons, enjoy funding patent infringement cases. Earlier in my career, I tried patent infringement cases and by actively litigating a case or subject matter you really develop the ability to understand what makes a case meritorious or advantageous or what makes the case not good. So those are the two sub-focuses in our commercial lending. We enjoy looking at single case risk or portfolio funding. Q: On ESG Investing & Access to Justice At the end of the day, the job of a funder is to make sure there’s access to justice for somebody who thinks he or she should have a day in court. Embedded in that is an inherent ESG leveling-the-playing-field thought process. Learn more about Siltstone’s upcoming event, LitFinCon (the inaugural litigation finance conference in the Houston area), here.

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European Opt-Out Class Action Claims Pass €200 Billion as Courts Turn Attention to Funding Arrangements

The cumulative value of opt-out class actions across Europe's highest-risk jurisdictions has surpassed €200 billion, and filings have resumed growth after a one-year dip, according to CMS's European Class Action Report 2026.

As reported by Scottish Legal News, the number of class actions filed across Europe rose to 107 in 2025 from 99 in 2024, still below the 2023 peak but pointing to renewed activity. In the UK, the total value of class actions climbed to €179.52 billion from €159.55 billion. Across the three leading opt-out jurisdictions — the UK, the Netherlands and Portugal — the combined value of opt-out claims reached €203.45 billion, up from €173.09 billion.

The growth since 2020 is steeper still. UK opt-out claim values have risen almost fivefold, from €21.65 billion to €101.66 billion, while the three-jurisdiction total has increased nearly tenfold from €22.52 billion.

Consumer and competition claims remained the largest category at 37% of filings, with product liability and personal injury at 14% and data protection at 13%. CMS expects the EU Product Liability Directive's implementation to broaden the scope for claims involving software and AI systems.

Kenny Henderson, a partner at CMS, said the €200 billion figure "would have been unthinkable just a few years ago," and that for large corporates operating in Europe, class actions are "an established and increasingly interconnected litigation risk." The report identifies litigation funding as a principal area to watch, noting that courts across Europe are paying closer attention to the relationship between funders and claimants, with significant judicial guidance expected in the coming years.

Pinsent Masons Tells Law Commission a New Opt-Out Consumer Class Action Regime Risks Becoming a “Cash Cow” for Funders

Pinsent Masons has warned that a new opt-out consumer class action regime in England and Wales could end up serving claimant law firms and litigation funders more than the consumers it is meant to compensate.

As reported by Out-Law, the firm has submitted its response to the Law Commission's scoping questionnaire on consumer class actions ahead of the 30 October deadline. The Law Commission is examining, at the UK government's request, whether a dedicated collective regime would strengthen consumer law enforcement; unlike competition claims, consumer law claims currently have no bespoke mass claims mechanism.

In its submission, the firm questioned whether such a regime would address a genuine unmet need. "Far from enabling access to justice, prioritising litigation over more appropriate mechanisms of redress could result in an explosion of speculative consumer law claims being brought for-profit with little to no benefits for those represented," it said. "This approach provides little in the way of justice, but large rewards for funders and lawyers."

The firm also argued that creating any new opt-out regime now would be premature, given that substantive consumer law enforcement reforms only took effect last year and that a separate consultation on the competition opt-out regime remains ongoing. On the existing regime's record, it said damages are "accessed by only a small number, and these damages are dwarfed by the returns for funders and lawyers," cautioning against "conflating 'access to justice' with 'access to litigation'."

If a regime does proceed, Pinsent Masons proposed guardrails including stricter regulation of third-party litigation funding, robust certification rules, an early strike out mechanism for abusive claims, and costs controls.

Motor Finance Claims Firm Enters Administration Owing Money to Collapsed Funder Woodville

A Welsh law firm specialising in motor finance redress claims has been placed into administration while carrying an outstanding charge in favour of Woodville Consultants Limited, the litigation funder that itself collapsed in July.

As reported by The Law Society Gazette, Swansea-based Fairplane Solicitors Limited, which also traded as The Refund Lawyer, began insolvency proceedings with administrators from Kroll Advisory Ltd appointed on 1 October. The firm is understood to be undergoing an orderly closure, with clients protected under its succession plan. The Refund Lawyer brand was set up exclusively to pursue claims for mis-sold commissions and excessive interest charges on vehicle finance, and Fairplane had worked on mis-sold finance claims on a no-win, no-fee basis for a decade.

Abridged accounts for the year to March 2025 showed total net liabilities exceeding £900,000. Assets were assessed at more than £23 million, but cash reserves stood at just £35,000 and longer-term debts had risen 23% over twelve months. Headcount grew from 21 to 28 across the same period. The Solicitors Regulation Authority said it is liaising with the firm and would consider action only if client interests were at risk.

Woodville, also based in south Wales, was placed into administration in July, with Kroll likewise appointed. Its administrators have expressed "significant concerns as to the realisable value of the loan book," reporting last month that the funder concentrated lending on 10 law firms and associated entities, primarily in Wales and northwest England, and that loans to only one firm appeared to be secured. Funding may in some cases have supported general working capital rather than case costs.