Australian Funding Partners goes into administration after $11.7m fine

Australian Funding Partners (AFPL) has declared bankruptcy and gone into administration after being fined $11.7 million. AFPL was the funder behind the Banksia Securities class in which an Australian Supreme Court judge found that AFPL, as well as five lawyers, engaged in “egregious conduct in connection with a fraudulent scheme” whereby they intended to claim over $19 million in legal costs and funding commission from the Banksia settlement.

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The need to get more value out of a lawyer’s hour

Jacob Varghese of Australian law firm Maurice Blackburn marvels at how the digital revolution has bizarrely increased the overall cost of litigation despite the world becoming more productive in many other areas and points to litigation funding as a tool that corporate counsel should embrace – not to make litigation less expensive – but to make losing less expensive.

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Funder and lawyers ordered to pay over $11 million for “egregious conduct”

An Australian court has found that the litigation funder and lawyers involved in the Banksia class action engaged in egregious conduct in a scheme intended to claim more than $19 million in purported legal costs and funding commissions from the class action settlement, and they have been ordered to pay damages of over $11 million.

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