Lawsuit funding sparks insurer concerns

The debate over disclosure of litigation funding in the US continues – a statement by Tim McCarthy of Verisk Analytics that “funding should be disclosed in the same way insurance details must be disclosed” has been met with stiff opposition from Andrew Lundberg of Burford Capital, who argues that litigation funding is “not relevant in the same way insurance coverage is required to be disclosed in litigation,” where parties are “effectively insured or indemnified against a bad outcome.” More from Business Insurance.

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In the News

US court asked to enforce $320m claim against Argentina

A long-standing legal dispute over the renationalisation of Aerolineas Argentinas has resurfaced in the United States, with a Washington DC court being asked to enforce a $325 million award issued against Argentina. The petition was filed by Titan Consortium 1 LLC, who acquired an interest in the case from Burford Capital in 2018 for $107 million. After an arbitration tribunal rendered an award in favour of the claimants in 2017, Burford decided to sell its stake in order accelerate cash recovery and be able to reinvest the capital. It reported a gain of $94.2 million on the case after investing $12.8 million into the matter.

Funder News

Burford continues to fund larger and more complex cases

Burford Capital has provided an update on its business performance for the six months ended June 30, 2021. The company saw $500+ million in new commitments, with a continuance in its trend towards funding larger and more complex new matters. Of its 14 new case investments, none had commitment levels under $5 million while six were $20 million or above. COVID has continued to impact the company, however, with an estimated 43% of cases incurring COVID-related delays, ranging from court date postponements to delays in the provision of discovery to slower settlement activity given the absence of a looming trial date to engender settlement. Optimistically, Burford believes that, due to how it often prices deals, ultimate returns may actually increase because of the passage of time.

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