• Litigation Finance Insider
  • Posts
  • When the shareholder becomes the litigation funder: The Federal Court of Justice redraws the boundaries of the duty of loyalty

When the shareholder becomes the litigation funder: The Federal Court of Justice redraws the boundaries of the duty of loyalty

Dr. Robert Schiller and David Santa of PwC Legal examine a German Federal Court of Justice ruling that upheld the contractual risk allocation in shareholder-linked litigation funding, finding that a 30% success fee could not be retrospectively reduced under fiduciary-duty principles, while also stressing the need for strict compliance with shareholder approval and notice requirements.