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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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Harry Moran

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Burford Capital Announces 2025 Investor Day

By Harry Moran and 4 others |

Burford Capital Limited ("Burford" or the "Company"), the leading global finance and asset management firm focused on law, today announces it will host an Investor Day on Thursday, April 3, 2025, in New York City, which will also be webcast live and available for replay. The presentation is scheduled to begin at 9.00am EDT.

Led by Burford's executive management team and other key leaders, the event will provide a comprehensive strategic update on Burford's business and will also serve as an immersive introduction for investors and analysts who are new to the Company.

About Burford Capital

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and it works with companies and law firms around the world from its offices in New York, London, Chicago, Washington, DC, Singapore, Dubai and Hong Kong.For more information, please visit www.burfordcapital.com.

Counsel Financial Unveils Revamped Website, Modern Branding and Expanded Product Offerings

By Harry Moran and 4 others |

Counsel Financial, the nation's leading provider of financing solutions exclusively for plaintiff law firms, is proud to announce the launch of its newly redesigned website and updated branding. The refreshed branding underscores the company's commitment to providing accessible capital solutions to the plaintiffs' bar while highlighting its expanded scope of services offered to capital providers who invest in law firms focused on contingent-fee litigation.

The updated website, CounselFinancial.com, features a streamlined design, enhanced functionality, and includes new sections detailing the company's tech-enabled, end-to-end solutions for banks and investment funds. Visitors can now explore the site with ease, accessing detailed information on Counsel Financial's array of financing solutions, resources and success stories from law firms nationwide.

"Counsel Financial has always been a pioneer in the legal funding space and this rebrand reflects our evolution while staying true to our mission of empowering plaintiff firms to achieve financial stability and success," said Paul Cody, CEO. "The new website represents our commitment to growth, accessibility and continuing to be the trusted partner for law firms and capital providers."

Unmatched Servicing Expertise

A standout feature of Counsel Financial's offerings is its comprehensive servicing capabilities, designed to meet the complex needs of capital providers investing in law firm financing. With expertise in collateral monitoring and case valuation, Counsel Financial provides unparalleled servicing for portfolios secured by contingent fee interests. The company's proprietary systems and dedicated team ensure accurate case tracking, timely reporting, and proactive management of legal fee receivables. Partnering with Counsel Financial allows capital providers to tap into the company's 25 years of legal funding expertise, enabling them to maximize portfolio performance and mitigate risk effectively.

A Legacy of Innovation

Founded by attorneys for attorneys, Counsel Financial has provided over $1.5 billion in loans to plaintiff law firms since its inception. The company's industry expertise, combined with its commitment to client success, has positioned it as a trusted partner for firms looking to grow their practices and manage financial hurdles effectively.

Visit CounselFinancial.com to explore the new website, learn more about the expanded product offerings, and discover how Counsel Financial can help your firm achieve its goals.

About Counsel Financial

Counsel Financial is the premier litigation financing company in the U.S., founded by attorneys in 2000. We operate with the belief that opportunities should never be limited by resources. Counsel Financial is dedicated to helping law firms and capital providers succeed and grow together in the evolving world of contingency-fee litigation.

Arena Investors, LP and Fort Morgan Capital Partner to Launch $50 Million Litigation Finance Venture

By Harry Moran |

Arena Investors, LP ("Arena") and Fort Morgan Capital, a subsidiary of SimpleCITI Companies ("SimpleCITI"), are proud to announce the launch of a $50 million joint venture ("JV") focused on providing law firm finance solutions for US law firms. Targeting growth financing between $1 million to $15 million, the JV will offer capital secured by the value of a law firm's aggregate legal assets (cases).  Patrick Shannon will lead JV operations with a focus on diligence, underwriting, servicing, and originations.

About the Joint Venture

The JV has already started deploying capital, with the goal of delivering $50 million in tailored financing solutions.  Capital will be utilized to navigate growth by scaling operational infrastructure and investments in marketing.  This comprehensive approach ensures that law firms can focus on achieving successful outcomes without the financial strain of upfront costs.

Arena has a long history in legal asset investments, including its principals having helped build some of the earlier litigation finance platforms dating back to the late 1990s.  SimpleCITI builds on a proven track record of leadership and innovation across diverse industries, establishing itself as a trusted partner in solving complex financial challenges. Together, Arena and SimpleCITI leverage their unparalleled expertise to redefine client-focused solutions in litigation finance."

Strategic Collaboration

Arena Managing Director, Victor Dupont, noted that "Arena is very excited to expand and build upon our nearly decade-long relationship and successful track record with Patrick in this new joint venture.  Fort Morgan Capital will serve a critical role in working with select legal practices and market participants in navigating liquidity challenges amid this fluctuating market, while also promoting sustainable operational and marketing growth."

"This JV represents a strategic milestone for Fort Morgan Capital," said a SimpleCITI spokesperson. "By partnering with Arena, we're unlocking new opportunities for law firms to grow sustainably while maintaining financial stability.  This venture underscores our commitment to innovation and value creation in the litigation finance space."

Pat Shannon added, "Our focus on episodic opportunities within litigation finance aligns perfectly with this venture. Together, we are delivering a scalable platform that empowers law firms to thrive in a competitive landscape."

About Arena Investors, LP:

Arena Investors, a subsidiary of Arena Investor Group holdings, is an institutional asset manager founded in partnership with The Westaim Corporation (TSXV: WED). With approximately $3.5 billion of invested and committed assets under management as of December 31, 2024, and a team of over 180 employees in offices globally, Arena provides creative solutions for those seeking capital across all corporate, real estate, and structured finance investment areas, at all levels of the capital structure, and in all developed markets, alongside operational capabilities to manage and improve businesses.  The firm brings individuals with decades of experience, a track record of comfort with complexity, the ability to deliver within time constraints, and the flexibility to engage in transactions and business operations that cannot be addressed by banks and other conventional financial institutions. See www.arenaco.com for more information.

About SimpleCITI Companies:

SimpleCITI Companies is an operational-first platform specializing in real estate (SimpleEQUITIES), litigation finance (Fort Morgan), and fiduciary advisory services (SimpleADVISORY). The firm provides institutional-grade solutions across sophisticated markets. Fort Morgan, the litigation finance division, offers innovative funding solutions for law firms, blending conservative valuation with operational expertise. SimpleADVISORY ensures disciplined underwriting and compliance to support Fort Morgan's strategic initiatives.

About Pat Shannon:

Pat Shannon brings extensive industry expertise, previously serving as Chief Operating Officer at Mustang Litigation Funding, a platform renowned for its proficiency across diverse litigation finance disciplines. With a focus on episodic and idiosyncratic opportunities in niche sub-sectors, Pat leads the JV's diligence, underwriting, and origination efforts.