Fifth circuit rejects a challenge to litigation funding agreement for lack of standing

Amy Geise and Ken Epstein of Omni Bridgeway review a recent US Fifth Circuit decision that sends a clear message to those seeking to challenge a trustee’s litigation funding agreement: you’d better be on solid ground when it comes to “standing.” In the five-page opinion authored by Judge Jacques L. Weiner, Jr., the court found that the appellant-debtor in the case lacked standing to challenge a funding agreement approved by a Texas Bankruptcy Court. The Fifth Circuit found that the debtor was not “directly, adversely, and financially impacted” by the funding agreement or the bankruptcy court’s order. Read more.

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Litigation Funders Expect More Class Actions as Australia’s Government Relaxes Rules

Plans by Australia’s recently elected Labor government to reinstate a financial services licensing exemption for litigation funders could lead to an upswing in class action funding. Andrew Saker, chief executive of litigation funder Omni Bridgeway, one of the few funders to have an Australian Financial Services Licence, said the government’s proposed changes will create a more conducive environment for litigation funders to work in the class action environment.

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