August 24, 2021

Liti Capital is backing a claim against cryptocurrency exchange Binance on behalf of traders who lost money when their accounts were frozen on May 19, 2021, a critical day when crypto prices were crashing. At least 700 Binance users were effectively unable to trade on the platform for multiple hours, resulting in estimated losses of more than US $100 million. To date, traders have tried to contact Binance for support and compensation but have been unsuccessful. Under the platform's terms of service, disputes must be filed with the Hong Kong International Arbitration Centre. White & Case LLP has been engaged to represent affected individuals.
AxiaFunder has joined in backing a group litigation claim valued at over £180 million against two retail banks for misrepresentations concerning fixed rate small business loans. The claim has been underway since May 2019, with over £12 million of financing committed by another litigation funder to cover the costs of the actual litigation. AxiaFunder's capital will be used to source additional claimants for the case and also to cover some of the overheads of the claims management team. The return for investors is estimated to be between 1.85x and 2.51x capital.
The UK's Competition Appeal Tribunal last week certified the highly anticipated Merricks v. Mastercard lawsuit, which represents the first time an opt-out class action has been certified since the new regime was introduced in 2015. Innsworth Capital is providing funding of up £45.1 million for the case, which could see Mastercard liable for around £14 billion of damages for infringing EU law by charging 'interchange' fees on the use of debit and credit cards between 1992 and 2008. In granting the order, the Tribunal looked closely at the litigation funding agreement and determined that it was suitable, subject to Innsworth providing an undertaking as to liability for costs.
Marla Decker of Lake Whillans summarises the results of a recent survey which indicates that economic terms are by far the most important factor lawyers consider when selecting a litigation funder, though she stresses that savvy claimholders and counsel should also ensure alignment on other dimensions besides cost.
John Hanley and Maxim Waldbaum of Rimon, P.C. note that while, as a general rule, attorney-client privilege and other protections against disclosure are waived whenever protected information is disclosed by a client to a third party, a growing number of US cases have held that information shared with litigation funders is protected under either the (i) work product doctrine or (ii) common interest doctrine.
Kevin Matthews has joined Deminor as the company's global head of marketing, based in London. Kevin was previously Marketing Director at Leathwaite, one of the world’s leading executive search, leadership talent and research consultancies. At Deminor, he will take the lead in all aspects of the company’s corporate brand, communications and marketing strategy, with a focus on helping Deminor continue to establish itself as one of the globe’s leading litigation funding providers.
Bank Cartel Claims Europe (BCCE), a joint-venture of law firm Grantley Sinclair LLP and litigation finance firm Commercial Damages Claims Limited last week announced a $12 million funding round for its dedicated litigation finance fund, the Bank Cartel Claims Fund. BCCE plans to use the capital to hire lawyers and economic experts to pursue three antitrust damages claims that it has identified against European investment banks. Damages are expected to exceed $1 billion.

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