LitFin funds claims against Wirecard auditor EY

LitFin is funding claims against Wirecard auditor Ernst & Young and has announced that to date it has gathered claims of more than 20,000 shareholders and creditors who lost money when the Munich-based company liquidated last year with a $2 billion hole in its balance sheet. Pinsent Masons is representing the claimants. EY has repeatedly denied any wrongdoing and said it is the victim of “collusive fraud” designed to fool investors and auditors. German lawmakers, however, have recently been presented with a confidential report by the country’s special investigator that reportedly blames EY for not fully scrutinising Wirecard’s Asian business, which later emerged to be the centre of the fraud. Read more.

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Funder News

Liti Capital launches ScamBusters to tackle crypto fraud

Liti Capital, the Switzerland-based litigation funder that raised capital by issuing investors blockchain-based tokens, has announced that it is launching ScamBusters, a new tool that allows its investors to vote for which crypto-focused cases the company should pursue next. The company is committing between 5% and 10% of its yearly investment budget for this initiative. The first twelve cases up for voting include a fake automated trading scam in which over 5,000 victims lost over $10 million and a bitcoin sports betting scam in which victims invested in a BTC sports trading company that combined crypto currency with sports betting, which turned out to be a Ponzi scheme promising between a 15% to 20% return per month.

New Fundings

Bench Walk provides Gateley with £50 million litigation funding facility

Bench Walk Advisors has been revealed as the firm providing UK legal and professional services group, Gateley with a £50 million funding facility. The agreement will see Gateley become one of only two listed law firms with access to a funding facility. Richard Healey, partner and head of Gateley’s dispute resolution group, noted that Bench Walk was chosen after a careful exercise in which a number of funders were assessed based on set criteria.

Funder News

Longford Capital Raises $682 Million for New Investment Fund

Chicago-based Longford Capital Management has raised $682 million for its third investment fund and has already committed $270 million to new investments in the fund. Fund III is the third private investment fund Longford has closed since the firm began operating in 2013, and its assets under management now exceed $1.2 billion. Fund III includes repeat investors from Funds I and II, as well as many new investors, attracting capital from state and municipal pension funds, university endowments, foundations, single and multi-family offices, and high-net-worth individuals.

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