Despite Its Allure, Litigation Funding Is Just ‘The Cost of Doing Business’ for Class Counsel

A US federal district court has rejected a novel request from class counsel for reimbursement of litigation funding expenses, stating that litigation funding is just “the cost of doing business” for class counsel. Among the costs for which counsel sought recovery were a $300,000 payment to a broker that reportedly arranged the litigation funding agreement, as well as $15 million to be paid to the litigation funder, which represented a $5 million return on the funder’s $10 million investment. More from Akin Gump.

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Merricks v Mastercard: U.K. Competition Appeal Tribunal Gives Green Light for First Ever ‘Opt-out’ Class Action

Akin Gump shares it key takeaways from the landmark Merricks v Mastercard judgment, noting that the Competition Appeal Tribunal initially raised concerns during the hearing over a unilateral termination clause in favour of the funder and the funding difficulties that it could cause the class mid-proceedings before ultimately concluding that an addendum requiring that the funder’s view to terminate be based on independent legal and expert advice sufficiently addressed those concerns.

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