In the News

Funders in mainstream media reports.

The Supreme Court of Victoria last week refused to allow class action contingency fees in the first decision under the new regime. Victoria is the only Australian jurisdiction so far to allow court approved contingency fees in class actions and allows plaintiff law firms to compete directly with third party funders. In refusing the group cost order, the court noted that the 25% contingency fee was not more favourable than the arrangement the plaintiffs already had in place.
Lawyers chasing personal injury firms over the deductions from former clients’ damages have been handed a huge boost after a UK costs judge rejected an application by the law firm Slater & Gordon to have claims from its former clients stayed. The cases centre around the so-called 'secret' profits received by the firm as commissions from ATE insurance premiums. There are likely to be hundreds of other similar cases pending this decision against other PI firms.
The temperature of the debate around class actions and litigation funding is heating up in New Zealand. The country’s biggest litigation funder LPF has sent a letter to the Law Commission in which it voiced its dismay over the "volume and shrillness in much of the recent negative commentary." LPF also provided the Commission with statistics showing that of the 29 funded cases that have been settled in the last ten years, litigation funders' profit has amounted to only 6% of the amount awarded or paid in settlement.
Attorneys in the fast-growing wildfire litigation industry are racing to recruit victims of fires ravaging parts of Northern California, and they're promising to take on a familiar target: PG&E. Some victims, however, are wary of certain attorneys who are backed by litigation funders who previously negotiated against their interests in the PG&E bankruptcy proceedings.
The New South Wales Supreme Court has dismissed a class-action airbag lawsuit against Volkswagen Group Australia. The Court held that the lead plaintiff, Professor Phillip Dwyer, couldn’t establish he had suffered any damage as a result of the installation of a Takata airbag in his vehicle, and that he couldn’t establish the vehicle wasn’t of acceptable quality when he purchased it. It has now ruled that the funder of the litigation is “jointly and severally liable” for costs to Volkswagen Group Australia.
Six Chinese banks weren't liable for a potential $150 million in sanctions for failing to freeze the assets of hundreds of Nike counterfeiters, the 2nd U.S. Circuit Court of Appeals ruled last week. Next Investments LLC, a Houston-based unit of litigation finance firm Tenor Capital Management LP, bought the rights to the $1.8 billion default award from Nike but failed to seek enforcement of the freeze against the banks for nearly six years before asking the court to hold them in contempt, U.S. Circuit Judge Michael Park wrote for a unanimous three-judge panel.
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.
Investors in the failed Ross Asset Management ("RAM") Ponzi scheme have "reached an agreed settlement" with ANZ Bank that ends a case in which investors were claiming more than $50 million from New Zealand's largest bank. The case against ANZ alleged that it breached its duties as banker to RAM, that it was negligent in managing the RAM bank accounts and for actions of knowing receipt and dishonest assistance in relation to payments made by RAM through the ANZ. LPF Group funded the investors' claim.

Before You Go

Never miss a thing in the litigation finance market.