The hunt for redress: mortgage prisoners and potential implications for financial institutions and their insurers

Stuart Maleno and Dakota Glasgow-Simmonds of Clyde & Co comment on a group action currently being spearheaded in the UK by law firm Harcus Parker on behalf of over 200,000 borrowers who allege that the defendant lenders failed to treat them fairly, and anticipate further similar claims to be brought in the near future given the quantum of potential damages and the fact that some litigation funders are reportedly already alert to this “mortgage prisoner” issue. Read more.

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New Fundings

IVO Capital backs €6 billion claim against TikTok

IVO Capital is backing a €6 billion claim against Chinese social media platform TikTok filed by Stichting Massaschade & Consument, a Dutch non-profit organization that defends the rights of consumers in cases of mass damage. The claim is on behalf of 4.5 million Dutch users whose sensitive data was allegedly illegally harvested and auctioned off. With the lawsuit, the foundation wants to encourage TikTok to respect European privacy laws and provide clarity on the logic behind its algorithm.

New Fundings

Up to £45 million of ‘Follower Notice’ penalties liable to be repaid by HMRC

Fieldfisher, through its FeeSolve litigation funding service, is backing a potential group action against HMRC in relation to up to £45 million of ‘Follower Notice’ penalties that HMRC may be liable to repay. A recent Supreme Court decision has cast doubt on the enforceability of certain penalties issued by HMRC in cases of perceived tax avoidance.

New Fundings

PGMBM and SPS Capital invest additional capital into BHP case

PGMBM and SPS Capital, a prominent Brazilian special situations fund with expertise in DIP financing and litigation funding, concluded a follow-on investment to partially further finance the case Municipality of Mariana & Ors v BHP plc & BHP Ltd. The claim against BHP was filed on behalf of the victims of the Fundão dam collapse that took place in November 2015 in Mariana, Brazil. The dam was owned by BHP’s Samarco joint venture and its collapse affected more than 200,000 people. In a landmark ruling, the English courts revived the claim that had been struck out last year, granting permission to appeal under exceptional appeals legislation.

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