An amendment filed to the Digital Markets, Competition and Consumers Bill last week will allow the use of damages-based agreements (DBAs) for opt-out collective proceedings heard in the Competition Appeal Tribunal, but only for litigation funders. The proposed amendment responds to the Supreme Court’s decision in PACCAR in July this year, which ruled that litigation funding agreements that allowed funders to recover a percentage of damages were prohibited.
The judgment left funders racing to renegotiate existing agreements in order to be able to enforce them, despite remaining adamant that they were optimistic about the industry as a whole. If this amendment is successful, renegotiation will be unnecessary, as litigation funding agreements (LFAs) based on percentages will remain viable. Continue reading “Government to address PACCAR ruling with amendment to Digital Markets Bill – but litigation funders argue it isn’t enough”
The UK litigation funding industry has been left scrambling to renegotiate contracts in the wake of a Supreme Court judgment earlier this week (26 July) which ruled that many of the funding agreements used for group action competition cases are unenforceable.
The judgment, which relates to the high-profile cartel case brought against DAF and other truck-makers, ruled that litigation funding agreements (LFAs) allowing funders to recover a percentage of damages awarded constitute damage-based agreements (DBAs), which are not allowed in collective actions in the Competition Appeal Tribunal (CAT). Continue reading ” ‘Unnecessary bedwetting’ – litigation funders moved to allay fears following Supreme Court blow”
The EU is gearing up to regulate the third-party litigation funding market following an EU parliamentary vote in favour of the resolution.
The regulations are intended to increase transparency, fairness and proportionality in the market, which until now has escaped formal regulation. Among the proposals is a 40% cap on the percentage of a court award or settlement that funders can claim, requirement for disclosure of third-party financing and for court awards to be sent directly to claimants. Continue reading “EU parliament eyes litigation funding regulation”
The acrimony between Burford Capital and Muddy Waters has shown no signs of abating, with the litigation funder enlisting Quinn Emanuel Urquhart & Sullivan to chase the identities of traders who allegedly manipulated its shares.
Quinn partner Richard East (pictured) submitted a statement to the High Court on behalf of Burford on Monday (30 September) which argued that the decline in the litigation funder’s share price was the result of ‘unlawful trading activity’. As a result, Quinn formally asked the High Court to obligate the London Stock Exchange (LSE) to reveal the identities of those placing orders and on whose behalf the orders were being placed. Continue reading “‘They’re lying’: Muddy Waters retaliates as Burford ramps up stock manipulation claims”
‘Throw enough mud at a wall, and some of it will stick,’ the proverb says. But since US investor Muddy Waters published a scathing attack on third-party litigation funder Burford Capital on 7 August, the muck-slinging has not stopped.
The charges in the 25-page report were devastating. Having labelled Burford a ‘poor business masquerading as a good one’, and suggesting the company was ‘already insolvent’, more than £1bn was wiped off the listed funder’s value. Five days later, Burford enlisted Freshfields Bruckhaus Deringer, Quinn Emanuel Urquhart & Sullivan and Morrison & Foerster to pursue claims of illegal market manipulation. Continue reading “Mud sticks to Burford amid intense row but dispute funders’ rise looks assured”
High-profile litigation funder Vannin Capital has been acquired by private equity house Fortress almost a year after shelving its planned initial public offering (IPO) due to market volatility.
The buyout sees Fortress acquire 100% of the equity in Vannin from existing shareholders, including majority owner Bramden investments, with private equity backing now preferred over a significant public raising. Continue reading “Vannin Capital ends flotation plans after acquisition by private equity house Fortress”
An executive at under-fire Burford Capital has been accused of unlawfully exchanging confidential documents for a sex tape in a lawsuit filed at the High Court in London, adding another battle for the litigation funder.
In the lawsuit, the company’s co-head of its global corporate intelligence, asset tracing and enforcement business, Daniel Hall, is alleged to have provided sensitive documents obtained while working for a shipping client. Hall allegedly swapped the documents for video material of a sexual nature, relating to American billionaire Harry Sargeant III, whose assets he was investigating on behalf of another client. Continue reading “Controversy surrounds Burford as executive is accused of trading documents for sex tape”
Jacqueline Young from Augusta Ventures discusses the challenge litigation funders face to balance support for access to justice with more commercial considerations
We operate in a strong and growing legal environment. The UK legal services industry is going from strength to strength. A recent report valued the market at £35bn in 2018, with growth forecast at 5% in the coming years. Continue reading “Sponsored briefing: With great funding comes great responsibility!”
High-profile litigation funder Vannin Capital has shelved its planned initial public offering (IPO) only one month after announcing its intention to float, blaming volatile equity markets.
The move is a blow for the fast-growing litigation funder, which in September hired Allen & Overy veteran David Morley (pictured) as chair to spearhead the October listing, which would have seen £70m of new shares issued and some shares held by existing shareholders sold. Continue reading “Vannin Capital shelves IPO as volatile market knocks Aston Martin and Funding Circle listings”
In its first financial results since the £43m IPO in May, Rosenblatt has recorded a slight uptick in revenue and profit as it simultaneously launched its own litigation funding arm.
For the first eight weeks of its listed life, Rosenblatt generated £3m in revenue, compared to £2.6m for a two month average in the last financial year. EBITDA edged up from £0.9m to £1m on the same metric while profit before tax was also marginally up: from £0.8m to £0.95m. Continue reading “Rosenblatt battles Brexit uncertainty in post-IPO financials as it launches litigation funder”