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Commercial Deals

Multibillion Pound Claim Filed Against Sony Group

A claim against Sony Group was filed on 19 August 2022 in the UK’s Competition Appeal Tribunal (CAT). The claim is being brought on behalf of UK-based PlayStation users who have purchased digital games and/or add-on content from the PlayStation Store since 19 August 2016. The claim is being funded by Woodsford, the UK’s leading ESG, access to justice and litigation finance business.

It’s alleged that Sony is breaching UK and EU competition law by abusing its dominant position resulting in consumers paying inflated prices for digital PlayStation games and add-on content.

This standalone collective action is brought on behalf of an estimated 9 million potential class members. An application has been made to the CAT for a Collective Proceedings Order which if ordered will result in a single class representative representing all potential class members on an opt-out basis.

The proposed class representative is consumer champion Alex Neill, Chief Executive of Resolver.co.uk. Alex’s team, funded by Woodsford, includes the law firm Milberg London LLP, economics experts at Berkeley Research Group LLC and barristers from Monckton Chambers.

Woodsford’s Chief Executive Officer, Steven Friel, commented: “Woodsford’s ESG team is dedicated to holding big business to account when corporate wrongdoing causes loss to consumers and other stakeholders. We are proud to support Alex Neill’s case, helping deliver access to justice for millions of gamers. Our significant financial and professional resource is already backing UK class actions against train companies accused of overcharging, and shippers whose cartel behaviour is alleged to have inflated the price of cars. With the launch of this claim against Sony, and with more landmark cases being worked up, Woodsford is now clearly established as the most successful ESG and litigation finance business in this area of UK collective redress.”

Further information on the claim and updates on its progress can be found at www.playstationyouoweus.com.

About Woodsford

Founded in 2010 and with a presence in London, New York, Brisbane, Philadelphia and Minneapolis, Woodsford is a leading ESG, access to justice and litigation finance business.

Whether it is helping consumers achieve collective redress, ensuring that investors and universities are properly compensated when Big Tech infringes intellectual property rights, or helping shareholders in collaborative, escalated engagement up to and including litigation with listed companies, Woodsford is committed to ensuring the highest ESG standards while providing access to justice.

Working globally with many of the world’s leading law firms, our legal experience, investment, business and technical expertise, in tandem with our significant financial muscle, makes us a powerful partner and a formidable adversary.

Woodsford is a founder member of both the International Legal Finance Association (ILFA) and the Association of Litigation Funders of England & Wales (ALF), and a member of the International Corporate Governance Network.

Woodsford continues to grow, and we welcome approaches from experienced litigation lawyers and other professionals who are interested in joining our team.

For more information visit www.woodsford.com

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Community Spotlight: Jeffrey Stern, Partner, Reed Smith

By John Freund |

Jeffrey Stern plays a leading role as partner in the Financial Industry Group resident in Reed Smith's New York office. With more than 30 years’ experience in structured finance and derivatives, Jeffrey brings a deep commercial sensibility to his practice.

He has completed securitizations, structured credit facilities, and derivatives/structured products transactions involving an exceptionally wide range of esoteric (and mature) asset types. His practice includes CLOs (including private CLOs), CFOs, and rated feeders, litigation pre-settlement funding, consumer loan finance, equipment lease finance, music royalty finance, financing and securitization of insurance-related assets (including life settlements and broker commissions), and specialty finance. Additionally, Jeffrey has worked in Latin America and the Caribbean for nearly 20 years, focusing on cross-border assets and cash flow financings.

Company Name and Description: Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. With an inclusive culture and innovative mindset, they deliver smarter, more creative legal services that drive better outcomes for clients. Their deep industry knowledge, long-standing relationships and collaborative structure make them the go-to partner for complex disputes, transactions, and regulatory matters.

Company Website:  https://www.reedsmith.com/en

Founded: Pittsburgh in 1877

Headquarters: New York

Areas of Focus: Finance, Structured Finance, Financial Services, Collateralized Loan Obligations, Latin America

Member Quote: “The field of litigation pre-settlement funding (and litigation funding generally) is an increasingly important category, and a particular area of innovation in documentation and structuring, within the esoteric structured finance market. As a result, it has become an area of real focus for the Reed Smith structured finance team.”

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In its latest Quarterly Focus, Commercial Dispute Resolution (CDR) looks at the prospects for the third-party litigation funding market in the year ahead, highlighting both the tremendous progress the industry has made and the persistent critics who continue to call for enhanced regulations. In the article, CDR garners insights into what the coming year may hold from senior executives at some of the largest litigation funders, as well as those working with funders at law firms and consultancies.

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Despite the achievement of becoming a mainstream feature of the legal services industry, critics of third-party funding have not relented in their vocal opposition to its use, and if anything, have turning up the heat on lawmakers to introduce restrictions. Boris Ziser, a partner at Schulte Roth & Zabel, offers the straightforward rebuttal to these critics that he doesn’t “see how anyone can argue with the fact that litigation funding increases access to justice.”

Similarly, Avenue 33’s CEO, Rebecca Berrebi points out that the most prominent critique of third-party funding, the US Chamber of Commerce cannot be considered an unbiased observer as it “is funded by the big defendants in many of the cases that are funded”.Additional analysis from these top executives on the various legislative efforts to restrict legal funding, and the role of the courts, can be found in the CDR article.

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