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Commercial

SHIELDPAY LAUNCHES GUIDE TO EFFECTIVE LITIGATION SETTLEMENT DISTRIBUTION FOR LEGAL SECTOR

April 22, 2024

SHIELDPAY LAUNCHES GUIDE TO EFFECTIVE LITIGATION SETTLEMENT DISTRIBUTION FOR LEGAL SECTOR

In the face of increasing demand for better strategies for litigation compensation payments, Shieldpay, the payments partner for the legal sector, has created the ‘Blueprint to Distribution’; a step-by-step guide that shares best practice on how to scale efficiently and distribute best-in-class payments for claimants. 

The huge growth in litigation in recent years (total value of UK class actions alone rose from £76.6 billion in 2021 to £102.7 billion in 2022) means the legal sector must adopt strategies that will enable it to scale efficiently with the growing demand. In 2019, the average litigation revenue for a firm in the UK Litigation 50 was £82.4m. That figure had reached £110m by 2023 and is widely predicted to follow this upward trajectory.

Settlement payouts can be a complex and lengthy process without the right support and guidance. The process of distributing funds can often be overlooked until the settlement is finalised, leading to sudden complications, risk concerns and a huge administrative burden on a tight deadline.

Litigation cases are by no means finished once a settlement has been agreed. Depending on the size and complexity of the case, the distribution process can take many months, if not years. Most claimants will want the compensation due to them as quickly as possible, so firms need to plan for a successful and seamless distribution of funds well ahead of time to avoid frustration and uncertainty for their clients.

To help lawyers navigate litigation payments and adopt strategies that will reassure and build trust amongst claimants, Shieldpay’s ‘Blueprint to Distribution’ guide goes through the critical steps teams need to take throughout the case to ensure claimants receive their funds quickly and efficiently. The key to success is planning the distribution process as early as the budget-setting phase, where the payout is considered as part of the case management process to optimise for success. This process also includes developing a robust communications strategy, collecting and cleansing claimant data, and choosing the right payments partner to handle the settlement distribution.

In its guidance for legal practitioners on delivering a successful payout, ‘Blueprint to Distribution’ highlights the need for payment considerations to be aligned and collaborative throughout the lifecycle of a case, not left to be worked out at the end. Working with the right partner enables firms to understand how to design and deliver an optimal payout, taking into account the potential long lead times involved from the initial scoping of a case to the actual payout, with refinements and changes likely to occur to the requirements as a case unfolds. 

Claire Van der Zant, Shieldpay’s Director of Strategic Partnerships, and author of the guide, said: “Last year, the conversation amongst the litigation community was understandably focused on how to get cases to trial. Delays to proceedings arising from evolving case management requirements, including the PACCAR decision, caused delays and frustration amongst those actively litigating cases and striving for final judgements. 

“Fundamentally, legal professionals want to deliver justice and good outcomes for claimants. To do that, we need to think bigger than just a blueprint to trial, and consider a ‘Blueprint to Distribution’, because once a final judgement has been delivered, it doesn’t end there. Delivering a successful distribution requires advance planning and consideration to be effective and efficient. This step-by-step guide aims to help law firms, administrators and litigation funders deliver the best payment experience and outcome for claimants.” 

For the full ‘Blueprint to Distribution’ guide visit www.shieldpay.com/blueprint-to-distribution. 

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Commercial Fundraising

Loopa Finance Closes $70 Million Fund III

Loopa Finance has announced the successful closing of its third litigation finance vehicle, raising USD 70 million and pushing the firm’s total capital commitments past the USD 100 million mark since inception. The milestone underscores the continued maturation of the litigation funding market across continental Europe and Latin America, where Loopa has positioned itself as a tech-driven, cross-border player focused on complex disputes.

A press release issued by Loopa Finance confirms that the new fund builds on two prior vehicles totaling USD 38 million, both of which have been fully deployed into meritorious cases across key jurisdictions in Europe and Latin America. With Fund III, Loopa intends to deepen its investment capacity in judicial litigation and complex arbitrations, while accelerating geographic expansion across strategic markets on both continents.

Co-founder and Managing Partner Fernando Folgueiro described the fundraise as a “turning point” from a legal-business perspective, noting that surpassing USD 100 million in commitments reflects growing market acceptance of litigation finance within the regional legal ecosystem. The firm emphasized its model of assuming litigation risk in exchange for a return only upon successful outcomes, while maintaining non-interference in legal strategy. Loopa invests across a broad range of disputes, including commercial and investment arbitration, corporate and contractual claims, insolvency proceedings, intellectual property matters, environmental disputes, and claims against the State.

Co-founder Yago Zavalia Gahan highlighted the firm’s continued investment in technology and scalable processes, reinforcing Loopa’s positioning as the first tech-focused litigation funder operating across both Latin America and continental Europe. Fund III attracted a mix of institutional and private investors from Europe and the Americas, including returning backers and new strategic participants.

As capital formation in emerging and cross-border markets accelerates, Loopa’s latest raise signals sustained investor confidence in litigation finance as an asset class beyond traditional Anglo-American jurisdictions—raising the question of how quickly regional regulatory frameworks and court practices will evolve alongside that growth.

Case Developments Commercial

Legal-Bay Spotlights $8.5M Uber Verdict in Arizona

By John Freund |

Legal-Bay has highlighted an $8.5 million jury verdict against Uber in an Arizona bellwether sexual assault trial, a result that may influence settlement postures across similar dockets. The Arizona jury found Uber liable and awarded damages to a plaintiff who alleged assault connected to the rideshare platform.

While case specifics remain limited in the public domain, the outcome provides another data point on potential exposure as claims advance nationwide. For funders and plaintiffs’ counsel, the verdict offers a reference point for damages modeling and negotiation strategy. Bellwether trials often test liability theories and damages presentations ahead of broader resolution, giving parties a benchmark for risk assessment. The Arizona ruling arrives as plaintiffs pursue a range of claims tied to driver misconduct and platform oversight.

An article in PR Newswire states that Legal-Bay characterized the case as a bellwether matter and underscored the significance of the $8.5 million award. The company reiterated that it provides pre settlement funding to claimants pursuing sexual assault lawsuits against rideshare companies, positioning capital to help plaintiffs bridge lengthy litigation timelines.

The report notes that ongoing proceedings involving Uber have drawn heightened attention to driver screening, in-app safety features, and incident response protocols. According to the release, Legal-Bay views the Arizona result as instructive for counsel evaluating case posture and timing of potential resolutions. The release also encourages potential claimants to consult their attorneys and consider non recourse advances where appropriate.

Commercial

Litigation Finance Supports Access to Justice

By John Freund |

Misconceptions about third party funding continue to surface in policy debates and courtrooms, yet the commercial litigation finance market has become a practical bridge to justice for businesses facing costly disputes.

An article in Mondaq explains that funding enables claimholders to pursue meritorious cases without diverting operating capital, particularly when litigation spend and duration are unpredictable. It also addresses recurring critiques, including allegations of funder control, the risk of frivolous filings, and opaque arrangements. Industry participants point to non recourse structures, rigorous underwriting, and counsel independence as guardrails that align incentives. For corporate legal departments, financing can rebalance negotiating dynamics against well capitalized adversaries, support portfolio based risk management, and preserve budgets for core projects. As interest rates and legal costs rise, the economic rationale for external capital has only strengthened.

Commercial litigation finance remains an important access to justice tool in the United States, countering false narratives that have colored recent commentary. It explains that most agreements are non recourse, so funders recover only from successful outcomes, which moderates risk taking and screens out weak claims. The piece notes that funders contract for information rights and consent on settlement only in limited circumstances, while strategic decisions remain with clients and counsel under ethics rules and court oversight.

It also observes that funding can complement contingency arrangements, after the event insurance, and defense side budgeting, creating optionality for both plaintiffs and defendants. On disclosure, the article surveys a patchwork of rules and argues that blanket mandates could chill capital formation without improving case management, favoring targeted judicial inquiries instead.

Expect continued legislative and rulemaking activity on disclosure and conflicts management, alongside growing adoption of voluntary best practices. As data sets on funded matters mature, stakeholders will seek more empirical analysis of outcomes and impacts on settlement dynamics. Cross border frameworks and portfolio structures are likely to expand as corporate users normalize funding within broader capital planning.