In a move poised to reshape dispute financing in the Nordic region, Morris Law has entered into a collaboration agreement with Stockholm-based funder Litigium Capital. The deal will see Litigium Capital finance a portfolio of disputes handled by Morris Law under full or partial contingency fee arrangements. The strategic partnership marks a significant step toward broader adoption of success-based billing in the region, while also easing litigation cost pressures for clients.

A press release from Morris Law confirms that the agreement, effective immediately, enables Morris Law clients to share the financial risks of litigation with both their counsel and the funder. Under the terms, Litigium Capital receives a portion of Morris Law’s success fees upon favorable case outcomes.

Notably, the agreement includes strong safeguards. with no client information will be disclosed to Litigium without explicit consent, and control over litigation strategy remains solely with the client. Both parties also adhere to strict codes of conduct. Morris Law follows AGRD Partners’ guidelines, while Litigium Capital is governed by the European Litigation Funder’s Association (ELFA), which sets confidentiality and conflict management standards.

Morris Law CEO Martin Taranger, who leads the first AGRD firm to embrace this model, underscored the alignment of interests that fee-sharing creates. Litigium Capital’s CEO, Thony Lindström Härdin, called the partnership a milestone in the region’s shift from traditional billing to more flexible, client-friendly funding models.

This partnership raises compelling questions for legal funders eyeing the Nordic market. As client demand for alternative billing rises, will other regional firms adopt similar models? With Morris Law and Litigium Capital setting a precedent, the Nordics could emerge as a new frontier for portfolio litigation funding.

Veteran mass tort attorney Harris Pogust is offering a cautionary tale to the litigation finance community, reflecting on the collapse of his former firm, Pogust Goodhead, after an eye-popping $500 million investment from Gramercy Funds Management. Now serving as a senior adviser at Bryant Park Capital, Pogust is urging funders to rethink how capital is deployed—and monitored—when backing law firms.

An article in Bloomberg Law captures Pogust’s retrospective on the 2023 mega-funding round, which at the time marked one of the largest single infusions into a plaintiff-side law firm. Despite the capital, Pogust Goodhead faltered under internal investigations and allegations of lavish spending, ultimately surrendering asset claims to Gramercy tied to the full $617 million value of the funding arrangement. Pogust bluntly warned that, absent proper oversight, handing a large check to a law firm can quickly devolve into what he described as “buy a Maserati and have fun,” with firms burning through capital without accountability.

In his current role, Pogust is advocating for a more hands-on model where funders act more like partners than passive financiers. He supports collaborative budgeting, ongoing financial oversight, and stronger alignment on outcomes between funders and firms. He also pushed back against calls for heightened regulation or taxation of litigation funders, suggesting that current legislative efforts unfairly target the industry.

For litigation funders, Pogust’s experience offers a timely reminder of the risks that accompany rapid deployment of capital without guardrails. As the size and complexity of funding deals continue to grow, the industry may need to adopt stricter governance standards, enhance operational due diligence, and establish frameworks that ensure discipline in how law firms deploy capital. Pogust’s remarks serve as both a warning and a blueprint for what responsible litigation funding should look like going forward.