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Leading European Finance Firm Nera Capital to Fund €1 Billion Truck Cartel Class Action

By Harry Moran |

A prominent European finance company has announced it will be funding over 25,000 claims in a €1 billion class action against truck manufacturers, who were part of a price-fixing cartel.

Nera Capital, which has offices in Manchester, Dublin and The Netherlands, is focussing exclusively on group redress claims, helping consumers and small to medium sized businesses, fight for justice against antitrust behaviour by corporates.

In 2016, the European Commission found MAN, Volvo/Renault, Daimler, Iveco, and DAF broke European Union antitrust rules by colluding on truck pricing and on passing on the costs of compliance with stricter emission rules from 1997 to 2011.

The Commission imposed a record €2.93 billion fine on the manufacturers, except MAN as it revealed the existence of the cartel. All companies acknowledged their involvement and agreed to settle the case.

Speaking about this historic class action, Nera Capital Director, Aisling Byrne, said this investment will ensure truck owners receive justice for the damage the 14-year cartel caused. “The agreements covered both medium-duty trucks and heavy-duty trucks and affected the entire European Economic Area. While the cartel stopped running in 2011, the after affect was felt by truck owners in the following years, and it is important that those affected get their chance for justice.”

Nera Capital has appointed a leading German law firm to act for the claimants in the case.

When the European Commissioner for Competition Margrethe Vestager handed down the historic fine in 2016, she said it was not acceptable that the manufacturers were part of a cartel instead of competing with each other. In 2016 she commented on the more than 30 million trucks on European roads, which accounted for around three quarters of inland transport of goods in Europe, playing a vital role for the European economy.

Ms Byrne echoed these comments and said the firm’s success is built through its strong industry relationships and a passion for justice. “This is a pivotal moment for corporate accountability,” she added. “Our investment underscores our commitment to supporting small businesses and consumers who have been impacted by antitrust violations. With a strong track record of committing over £475 million, in aggregate, into claims, we are excited to offer our support to truck owners across Europe, because we believe justice should be accessible to all. Nera Capital stands firm in its mission to level the playing field against corporate misconduct. This class action is not just about compensation but also about holding accountable those who undermine fair competition.”

About Nera Capital

·       Established in 2011, Nera Capital is a specialist funding provider to law firms.

·       Provides Law Firm Lend funding across diverse claim portfolios in both the Consumer and Commercial sector.

·       Headquartered in Dublin, the firm also has offices in Manchester and The Netherlands.

.     Member of European Litigation Funders Association.

.     www.neracapital.com

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Announcements Commercial Deals

Westbrooke Associates Expands into The Litigation Funding Sector

By Harry Moran |

Westbrooke Associates announces its expansion into the burgeoning litigation funding sector, marking a new chapter in its legacy of connecting investors with high-growth, socially impactful opportunities.

As a brokerage known for identifying innovative investment vehicles, Westbrooke Associates is now expanding into litigation funding, a niche asset class that has seen rapid growth in the UK and globally. Litigation funding provides financial backing to individuals and small businesses that would otherwise be unable to afford legal representation. This growing financial tool has proven essential in levelling the playing field in the legal system, enabling claimants to pursue justice against larger, well-funded opponents.

With rising litigation costs and increasingly complex cases, the demand for litigation funding has surged, particularly in markets such as the UK, which boasts one of the most advanced regulatory environments for this asset class. The global litigation funding market is experiencing extraordinary growth, with revenues projected to reach $43 billion by 2033, up from $17.1 billion in 2023.

As one of the most compelling alternative investment opportunities today, litigation funding offers investors a low-risk, high-return asset class that remains largely uncorrelated with traditional financial markets. This makes it an attractive option for portfolio diversification, especially during times of market volatility.

A report by Reynolds Porter Chamberlain LLP highlights that the top 15 litigation funders in the UK saw assets grow to a record £2.2 billion in 2020/21, an 11% increase from the previous year. With such exponential growth, Westbrooke Associates is poised to help investors capitalise on the robust potential of this asset class.

Westbrooke Associates' expertise in sourcing profitable investments that align with strong ESG (Environmental, Social and Governance) standards makes this a natural step forward. The firm has already established a successful collaboration with Addlington-West Legal Limited, offering investors access to litigation funding opportunities that prioritise both financial returns and social impact.

Litigation funding not only delivers strong returns but also plays a pivotal role in supporting justice. Westbrooke’s unique investment model ensures a rigorous due diligence process, with cases thoroughly vetted to back only those with strong chances of success. Investors benefit from fixed returns—typically generated within 18 months—while also supporting businesses that face significant financial barriers due to litigation costs.

Moreover, Westbrooke Associates' commitment to protecting investor capital is evident via the surety bond offered by Addlington-West Legal. This guarantees 100% capital protection in the event of unsuccessful claims, ensuring investor security and peace of mind. This level of risk mitigation, combined with relevant regulatory compliance, makes litigation funding a particularly attractive opportunity for Westbrooke Associates’ clients.

For investors seeking a safe, high-potential asset class, litigation funding through Westbrooke Associates represents an ideal investment opportunity. The firm’s longstanding reputation for identifying forward-thinking ventures is further bolstered by this new foray into the litigation funding space. Westbrooke Associates continues to demonstrate its ability to deliver innovative and socially responsible investment opportunities that align with the evolving needs of its investor base.

As the litigation funding market continues to grow, Westbrooke Associates is at the forefront of offering investors access to this dynamic and impactful sector. Whether you're a seasoned investor or looking to diversify your portfolio, Westbrooke Associates ensures that every investment opportunity provides both profitability and a positive societal impact.

For more information about how to invest in litigation funding through Westbrooke Associates or to request the Investment Memorandum, please visit www.westbrookeassociates.com or call 0203 745 0294.

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Announcements Commercial Deals

FiDeAL® Announces a Strategic Partnership with Outmatch to Strengthen Litigation Finance Consulting Services and Expand Operations in France

By Harry Moran |

Treviso – FiDeAL®, a leader in litigation finance consulting, is pleased to announce a new strategic partnership with Outmatch, a renowned French financial boutique specializing in M&A operations and in legal disputes resolution.

This collaboration marks a significant step in further strengthening FiDeAL’s litigation finance consulting services and in expanding its operations into the French legal market, one of the main European markets for complex legal disputes.

FiDeAL and Outmatch will combine their respective expertise to provide tailored solutions to French law firms and companies, supporting them with access to innovative financial tools and optimizing their legal strategies in high-profile litigation.

This partnership represents a milestone for both companies, opening new opportunities in the French market and offering a broader range of services to companies involved in complex disputes.

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Announcements Commercial Regulatory Issues

More Than 100 Companies Sign Letter Urging Third-Party Litigation Funding Disclosure Rule for Federal Courts Ahead of October Judicial Rules Meeting

By Harry Moran |

In the most significant demonstration of concern for secretive third-party litigation funding (TPLF) to date, 124 companies, including industry leaders in healthcare, technology, financial services, insurance, energy, transportation, automotive and other sectors today sent a letter to the Advisory Committee on Civil Rules urging creation of a new rule that would require a uniform process for the disclosure of TPLF in federal cases nationwide. The Advisory Committee on Civil Rules will meet on October 10 and plans to discuss whether to move ahead with the development of a new rule addressing TPLF.

The letter, organized by Lawyers for Civil Justice (LCJ), comes at a time when TPLF has grown into a 15 billion dollar industry and invests funding in an increasing number of cases which, in turn, has triggered a growing number of requests from litigants asking courts to order the disclosure of funding agreements in their cases. The letter contends that courts are responding to these requests with a “variety of approaches and inconsistent practices [that] is creating a fragmented and incoherent procedural landscape in the federal courts.” It states that a rule is “particularly needed to supersede the misplaced reliance on ex parte conversations; ex parte communications are strongly disfavored by the Code of Conduct for U.S. Judges because they are both ineffective in educating courts and highly unfair to the parties who are excluded.”

Reflecting the growing concern with undisclosed TPLF and its impact on the justice system, LCJ and the Institute for Legal Reform (ILR) submitted a separate detailed comment letter to the Advisory Committee that also advocates for a “simple and predictable rule for TPLF disclosure.”

Alex Dahl, LCJ’s General Counsel said: “The Advisory Committee should propose a straightforward, uniform rule for TPLF disclosure. Absent such a rule, the continued uncertainty and court-endorsed secrecy of non-party funding will further unfairly skew federal civil litigation. The support from 124 companies reflects both the importance of a uniform disclosure rule and the urgent need for action.”

The corporate letter advances a number of additional reasons why TPLF disclosure is needed in federal courts:

Control: The letter argues that parties “cannot make informed decisions without knowing the stakeholders who control the litigation… and cannot understand the control features of a TPLF agreement without reading the agreement.” While many funding agreements state that the funder does not control the litigation strategy, companies are increasingly concerned that they use their growing financial leverage to exercise improper influence.

Procedural safeguards: The companies maintain that the safeguards embodied in the Federal Rules of Civil Procedure (FRCP) cannot work without disclosure of TPLF.  One example is that courts and parties today are largely unaware of and unable to address conflicts between witnesses, the court, and parties on the one hand, and non-parties on the other, when these funding agreements and the financial interests behind them remain largely secret.

Appraisal of the case: Finally, the letter reasons that the FRCP already require the disclosure of corporate insurance policies which the Advisory Committee explained in 1970 “will enable counsel for both sides to make the same realistic appraisal of the case, so that settlement and litigation strategy are based on knowledge and not speculation.” The companies maintain that this very same logic should also require the disclosure of TPLF given its growing role and impact on federal civil litigation.

Besides the corporate letter and joint comment, LCJ is intensifying its efforts to rally companies and practitioners to Ask About TPLF in their cases, and to press for a uniform federal rule to require disclosure. LCJ will be launching a new Ask About TPLF website that will serve as a hub for its new campaign later this month.

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