In the News

Funders in mainstream media reports.

The Superior Court of Quebec has released a decision rejecting a litigation funding agreement in the insolvency proceedings of Fortress Global Enterprises (TSX:FGE). The Court refused to approve the litigation funding agreement because it placed limits on Omni Bridgeway's obligation to fund an eventual adverse costs award. Specifically, under the agreement, Omni had no obligation to pay adverse costs awards relating to costs incurred prior to the approval of the agreement or after its termination.
A lawyer who represented hundreds of players in a $1 billion concussion settlement with the National Football League is fighting an arbitrator’s order to repay some $2.3 million in high-interest loans from a litigation funder. In his filing with U.S. District Judge Gerald McHugh in Philadelphia, lawyer Craig Mitnick accuses Balanced Bridge and its lawyers at Fox Rothschild of taking advantage of him and violating “the cannons (sic) of ethics.”
Billionaire Barry Diller took the stand last week to defend his media empire from a lawsuit claiming that it cheated the founders of Tinder out of $2 billion. His attorneys have used millions of dollars in litigation funding payments to key witnesses to cast doubt on former CEO Sean Rad's case. Rad’s camp has argued that the payments are irrelevant to the suit, and the judge presiding over the trial found that the payments were not illegal, saying that it ”approaches the line between legitimate litigation funding and illegitimate payment of witnesses, [but] it does not cross it.” Bench Walk Advisors is the funder backing Rad in the Tinder case.
The demise of two big-hitting personal injury firms (Hampson Hughes and Pure Legal) is a sign that the once buoyant claims sector is in a period of flux, with experts pointing to this year’s whiplash reforms as the catalyst for change. Lenders have also had enough and want to see evidence that mountains of claims will actually result in settlements and profits. Pure Legal’s administration was preceded by legal finance provider Novitas petitioning the court for bankruptcy.
Pure Business Group, a Liverpool firm which handled civil legal claims, has collapsed into administration. Pure comprised two law firms, costs drafting and recovery, litigation funding provision and claims management operations. It also included a division offering claims handling services to the insurance industry as well as a sports management businesses. The insolvency is a drastic turn for the company, which just this past July announced that it had secured a new eight-figure funding line with Sandfield Capital intended to deliver dominant market-share.
London-listed mining group Panthera Resources PLC has acquired its Indian joint-venture partner, Metal Mining India Private Ltd (MMI). With the acquisition, the company has secured the rights of former MMI shareholders to make a potential claim under the Australia-India Bilateral Investment Treaty against the Republic of India over the grant of certain prospecting licenses. The company's legal adviser has said a potential claim under the treaty has legal merit, and discussions are under way with several potential litigation funders to support a claim.

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