Funder fails in claim to recover losses from firm’s indemnity insurer

Doorway Capital, the funder of collapsed London firm Seth Lovis & Co (SL), has failed in an attempt to recover the £1.6m it is owed from the practice’s professional indemnity insurer, with Mr. Justice Butcher ruling that the debt was not covered by the insurance policy. SL went into administration in March 2019 after it ran out of working capital, owing Doorway £1.6m, VFS Funding £3.2m and RBS £3m. Last year, the Solicitors Disciplinary Tribunal struck off the eponymous Seth Lovis for taking money from two different litigation funders for the same cases – against the terms of the funding agreements – in an attempt to keep his firm operating “at all costs”.

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Litigation funding “explosion” driving class actions across Europe

The “explosive growth” of litigation funding is behind an increase in class actions across Europe over the past two years, a report by the law firm CMS has argued. Kenny Henderson of CMS warns though that “as litigation funding expands, and in particular into class actions where the class members are often private individuals without independent legal advice, we are expecting increasing calls for formal statutory regulation.”

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Litigation funder keen on taking more stakes in law firms

Following its successful investment in specialist London fraud firm PCB Byrne, Burford is reportedly looking for more law firms willing to exchange a minority stake for capital as an alternative to a stock market listing. Separately, London dispute resolution law firm Pallas Partners has said it is open to the possibility of external investment.

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Data breaches: Two major representative actions discontinued in wake of Google ruling

Two major representative actions over alleged data breaches have been discontinued in the wake of last year’s Supreme Court ruling in Lloyd v Google. The YouTube data breach claim that sought damages of up to £2.5bn, was one of the cases discontinued, and was advised by Hausfeld and backed by funder Vannin Capital. The other case discontinued was one brought by Mishcon de Reya on behalf of approximately 1.6 million people whose confidential medical records were obtained by Google and DeepMind Technologies in breach of data protection laws.

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