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LFJ Dealmakers Panel: Opportunities at the Intersection of Funding, Mass Torts & ABS

LFJ Dealmakers Panel: Opportunities at the Intersection of Funding, Mass Torts & ABS

The panel discussion consisted of Jacob Malherbe, CEO of X Social Media, Sara Papantonio, Partner at Levin Papantonio Rafferty, and Ryan Stephen, Managing Partner of Pine Valley Capital Partners. The panel was moderated by Steve Nober, CEO of Consumer Attorney Marketing Group (CAMG), The discussion spanned the following topics:
  • Who’s doing what in mass torts? How about funding?
  • How funders are evaluating and working with firms
  • Examples of the ABS framework in action & challenges
  • Pre- and post-settlement funding and time to disbursement
The conversation began around the integration of litigation funders into the mass torts sector. There are a lot of variables to consider around mass torts which typically don’t exist in other case types. These include marketing ethics, use of proceeds, claimant access and relationship building, where the call center is located, firm operations at an administrative level, etc. These are all aspects of a law firm that litigation funders need to understand if they are going to partner with a mass torts law firm. The degree of diligence is vast, and will require a years-long commitment. What’s more, there is now a focus on unethical marketing practices, with Congress taking a look at the tactics being used. The question for funders is, how can you protect yourself from unethical marketing efforts (funders might be named in a suit against the law firm). Funders need to mitigate these risks by asking more questions at the outset: What kind of advertising is being used, where are the clients coming from, how do I know that the clients are real (ad tracking)? Too many funders are pouring money into this lucrative space, and run the risk of encountering scammers who set up a business looking to raise money for a mass torts claim, when they have no ability to secure claimants or conduct the proper marketing outreach. What this comes down to at its core is relationships—understanding and knowing who you’re working with. Funders need to feel that the law firm they partner with us trustworthy, but of course should still conduct their own diligence to verify that all activities are on the up and up. On this last point, the panel recommends creating more nuanced tracking—not just ‘cost per case.’ Track advertising costs, medical records, other marketing materials. Really understand how money is moving at a granular level. The discussion then pivoted over to the Camp Lejeune case. Sara Papantonio feels that there will be one more opportunity to make a push for cases when payouts start happening. The question is, will there be enough time to advertise and file a claim before the statute of limitations runs out? Papantonio also noted that many clients won’t qualify for the elective option, and those that do probably won’t take it because of how undervalued it is. So likely, we will see more cases move into litigation. Values are starting to be presented for Tier 1 and Tier 2 injuries, which will help push this into litigation as well. She believes around May of 2024 will be an opportunity to advertise, but the statute of limitations runs out in August. Papantonio explained that Tier 1 injuries are far less risk for funders and litigators. Tier 2s and Tier 3s will have to move through a process, and some won’t be approved, so there is more risk there. Papantonio also believes the fees will be capped at 20-25%, which was the DOJs recommendation. So funders and law firms should plan for that. One final point Papantonio made, was that these mega mass torts are sucking up all the oxygen in the space, but there are plenty of smaller torts that are very meritorious and present opportunities for funders and law firms. The panel concurred, given that $1 billion has spent on Camp Lejeune already, so any new entrants into that claim are coming in late stage. Panelists Ryan Stephen and Jacob Malherbe added that torts such as Tylenol, Roundup part two, paraquat, PFAS claim (which the panel believes might become the biggest case ever), anti-terrorism cases, and others. Malherbe even recommended ‘The Devil We Know,’ a documentary on Netflix about the PFAS claim—so anyone interested can follow up with some binge watching!
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Burford Releases New Quarterly on Navigating Global Business Disputes

By John Freund |

Burford Capital has published a new Burford Quarterly that pitches legal finance as a strategic resource for corporates and law firms confronting increasingly complex, cross-border matters. Vice Chair David Perla frames the theme succinctly: legal finance is no longer merely a tool to pay fees—it’s a way to unlock capital trapped in claims and manage portfolio risk as regulatory scrutiny and multijurisdictional exposure rise.

The issue is built around sector playbooks. A pharma feature addresses how generic and branded drug makers use financing to shoulder costly Hatch-Waxman litigation and development timelines, positioning capital as a buffer where damages are uncertain but speed to market is critical.

A construction-arbitration piece tracks the uptick in global disputes amid supply-chain shocks, decarbonization mandates, and elongated project schedules, with third-party capital smoothing cash flow over multi-year EPC programs and helping parties sustain high-value claims through arbitration.

Two additional components round out the package. A ten-year lookback on the UK’s opt-out competition regime argues funding has been central to the maturing collective-actions market and will remain pivotal as policymakers contemplate broader redress. And a Q&A tied to Burford’s strategic minority investment in Kindleworth explores how alternative capital and law-firm entrepreneurship intersect to seed specialist boutiques and align incentives with client outcomes.

UK Courts And Policymakers Narrow The Post-PACCAR Gap For Funders

By John Freund |

The UK’s fast-evolving funding landscape continues to clarify what works—and what doesn’t—after PACCAR. In July, the Court of Appeal in Sony Interactive v Neill held that LFAs pegging a funder’s return to deployed or committed capital, even when paid from proceeds and subject to a proceeds cap, are not damages-based agreements. That distinction matters: many CAT and other group LFAs were rewritten over the past year to swap percentage-of-recovery models for multiple-based economics, and the ruling indicates those structures remain enforceable when drafted with care.

Quinn Emanuel's Business Litigation Report traces the arc from PACCAR’s treatment of percentage-based LFAs to Sony v Neill’s clarification and the policy response now gathering steam. The analysis underscores that returns keyed to funding outlay—not the quantum of recovery—avoid the DBA regime, reducing the risk that amended post-PACCAR agreements are second-guessed at certification or settlement approval.

The Civil Justice Council’s June Final Report outlines a legislative repair kit: a statutory fix to reverse PACCAR’s impact prospectively and retrospectively; an explicit separation of third-party funding from contingency-fee arrangements; a shift from self-regulation to light-touch statutory oversight; and, in exceptional cases, judicial power to permit recovery of funding costs from losing defendants. The CJC would also keep third-party funding of arbitration outside the formal regime.

For market participants, the immediate implications are contractual. Multiples, proceeds caps, waterfall mechanics, and severability language deserve meticulous treatment; so do disclosure and control provisions, given heightened judicial scrutiny of class representation and adverse costs exposure.

Burford Hires Veteran Spanish Disputes Lawyer to Bolster EU Footprint

By John Freund |

Burford Capital has strengthened its European presence with its first senior hire in Spain, recruiting Teresa Gutiérrez Chacón as Senior Vice President based in Madrid.

According to the press release, Gutiérrez Chacón brings over 16 years of experience in complex dispute resolution, international arbitration, and legal strategy—most recently serving as Chief Legal Counsel for Pavilion Energy’s European trading arm. Her prior roles include positions at Freshfields and Gómez‑Acebo & Pombo, and she has been recognized by Legal 500 as a “Rising Star” in Litigation & Arbitration and named Best Arbitration Lawyer Under 40 by Iberian Lawyer.

In her new role, she will deepen Burford’s relationships with Spanish law firms and corporations, positioning the firm to address the growing demand in Spain for legal finance solutions. Burford emphasized that Spain’s sophisticated legal market presents “significant opportunities,” and that adding on‑the‑ground leadership in Madrid enhances its ability to deliver local insight and cross‑jurisdictional support.

Philipp Leibfried, Burford’s Head of Europe, noted that this hire demonstrates a commitment to expanding in key European jurisdictions and strengthening Burford’s role as a “trusted partner” for law firms and businesses seeking innovative capital solutions.