Liti Capital SA’s Post

Litigation Finance: Key Considerations for Companies Litigation finance is reshaping how claimants pursue claims and manage business funding. When considering litigation financing, companies should evaluate the protection of sensitive information and the strategic implications of such funding. 1. Information Sharing with Potential Funders Investors need detailed information to assess the potential payoff of a case. They typically review the case's status, the experience of legal counsel, decisions on key motions, and their own experiences with similar cases. Funders may also rely on summaries or discussions with counsel to determine if the case meets their funding criteria. However, shared information might become discoverable, presenting a trade-off for companies to consider. 2. Disclosure Rules for Litigation Funding As litigation financing grows, so do the rules governing its disclosure. Some courts view funding arrangements as irrelevant to the case's merits, denying motions to compel their disclosure. Others require such disclosures through local rules. 3. Discovery of Funding-Related Information by Adversaries Before disclosing non-public information to potential funders, parties should secure a non-disclosure agreement. However, this agreement does not guarantee the protection of shared materials. Courts differ on whether a third-party funder shares a common interest with the client and whether the attorney work-product doctrine protects materials shared with funders. Some courts liken litigation funding decisions to business transactions not covered by attorney-client privilege, assuming disclosed information is commercial, not privileged. This may lead to a waiver of privilege over any shared privileged information. Conversely, some courts are more open to applying the work-product doctrine, if not the attorney-client privilege, to funder communications, viewing them as confidential and litigation-related, not intended for adversaries. These rulings are often fact-specific, so funding-seeking parties should anticipate privilege disputes. 4. Impact of Funding Arrangements on Strategy and Settlement Claimants should consider the control provisions in funding arrangements and their impact on settlement and other strategic decisions. Issues arise over whether a funder can continue litigation against the client's wishes and if the funder can replace the client as the plaintiff to seek a higher return. 5. Protecting Sensitive Information and Maintaining Control Litigation funding can support clients in managing litigation costs or monetizing claims that might otherwise go unpursued. However, due to varying court approaches to disclosure and privilege, companies must carefully protect sensitive information and scrutinize funding terms to ensure they retain control over significant decisions and resolutions. #thirdpartyfunding #litigationfinance #litigationfunding #legalfinance

This is a great article from Bloomberg Law forecasting targeted growth in Litigation Finance in 2024. We are most excited that Bloomberg independently concluded that single-case funding (contrary to conventional wisdom) targeting specific practice group areas would see growth in 2024. At Lex Ferenda Litigation Funding LLC, we focus almost entirely on single-case funding of complex commercial claims, and our now deploying resources to the practice group areas and industry verticals we think will see increases in commercial litigation over the next cycle. Here’s a quick dive into what Bloomberg expects for the industry in the coming year: Focus on Specific Practice Areas: The industry is maturing and shifting towards targeted investment in key practice areas, with commercial litigation retaining its status as one of the largest recipients of third-party funding. Single-Case Funding on the Rise: As funders aim to focus their investments, interest in funding single cases will generally prevail over other funding options. International Litigation and ESG Focus: High-profile successes in international matters are driving interest in global litigation. Additionally, ESG issues are becoming prominent areas for funding, aligning with investors' interests in supporting positive social change. Optimism and Growth: According to Bloomberg Law's 2023 surveys, both litigation funders and the legal professionals utilizing their investments share a positive outlook on the industry's steady growth. Litigation finance is poised to continue its upward trajectory, presenting opportunities for professionals to benefit from what the industry has to offer. Please reach out to us at Lex Ferenda if you’d like to learn more about our focus points and where we are deploying people and capital. Looking forward to an exciting year ahead! #litigationfinance #litigation #litigators #growth Michael German Chris Baildon Andrew Kelley Andrew Bourhill https://lnkd.in/dMFz65d9

Litigation, and the funding of litigation, is risky. From a valuation perspective, a claim with a face value of $X must be discounted based on myriad factors, including the risk of subsequent litigation milestones, time, and collectability. And, all things equal, as the litigation progresses and a litigant successfully surpasses risk milestones, the asset becomes more valuable and closer to the $X face value. The process of valuating litigation assets for purposes of internal metrics is challenging enough. But the exercise becomes even more complicate when preparing materials upon which outside parties, i.e., investors in litigation funders, can rely in making investment decisions. This past year, Burford Capital released in its Form 20-F filed with the SEC a series of guidelines detailing its methodology for valuating litigation funding assets. This was groundbreaking. (Our firm even used the Burford document in an expert report in an arbitration a few months ago.) Today, international investment bank and consulting firm Houlihan Lokey released its own White Paper, detailing a framework for valuating litigation finance assets. The White Paper highlights the notions above, i.e., that a litigation asset is a function of time, risk milestones, and related factors. As the litigation funding market matures, we can expect to see additional guidance on valuating litigating assets. Slarskey LLC

🌟 How Private Equity and Litigation Finance Are Transforming Arizona’s Legal Landscape 🌟 Arizona is at the forefront of legal innovation, thanks to the introduction of Alternative Business Structures (ABS) in 2020. This groundbreaking move, allowing non-lawyers to own stakes in law firms, has opened the doors to private equity and litigation finance investments. 🏛️💼 Key Highlights: 🔹 Emergence of ABS: Since 2020, Arizona has approved 76 ABS applications, including significant investments from private equity and litigation finance. 🔹 Key Players: Firms like Pravati Capital, Virage Capital Management, and Melody Capital Management are leading the charge, investing in law firms and driving innovation. 🔹 Mass Torts Focus: Financial backing from litigation funders is propelling mass tort litigation, promising substantial returns. 🔹 Ethical Concerns: The dual role of marketing companies as both service providers and ABS owners raises potential conflicts of interest. 🔹 Nationwide Impact: While starting in Arizona, the ABS model is expanding, influencing legal markets across the U.S. 🔹 Economic Benefits: The ABS framework is fostering job creation, enhancing legal services, and modernizing the legal profession. Discover how Arizona's bold legal reforms are reshaping the industry and paving the way for a nationwide transformation. Dive into the full article to explore the economic benefits, ethical considerations, and future implications of this innovative approach. 📈⚖️ 🔗 Read the full article here: https://lnkd.in/gG6sXhW7 #LegalInnovation #PrivateEquity #LitigationFinance #AlternativeBusinessStructures #LegalMarketing #LawFirmGrowth #EthicalConsiderations #BlueSkyLegal

An Introduction to Litigation Funding (Claimant’s Version). Part 3: LFAs At this point, your solicitors will put a draft LFA in front of you and say you have “no choice” but to sign it or else abandon your claims. They will also say it’s a “form document” and not up for negotiation. These are both enabling falsehoods. Remember, if you sign, the lawyers start getting paid from the funders. Actions follow incentives. At least the first drips … They want you to sign, but do you? Also, it is likely the ‘nice guy’ claimant-facing person at the funder is verbally assuring you that if the claim ends up being determined for a lower value, they’ll “work things out” because the industry “always takes care of claimants with a fair (read 40-50%) share”. This is a lie, anything not in writing is worth zero and anything in writing 50/50 at best. - Beware the budget (it’s too small, and the lawyers are ‘in charge of managing it’) - Beware personal guarantees (never, never) - Beware arbitration clauses (beware courts that favor funders, as well) - Beware security liens (ask your personal lawyer or Google it) - Beware trust clauses and undertakings (funders love injunctions) - Beware choice of lawyers clauses - Beware the offer to “help” with the claim - Beware “independent KC” clauses (who pays for barristers and why are rates for all lawyers so high?) ***Ensure that the claims remain in the claimant’s full control (more on this later) and that tampering and champerty are held at bay (hint: the part about ‘taking lawyers’ advice’ or agreeing to take KC opinions is how they push their agenda when it is not in the best interest of the claimant). Beware! This list is by no means exhaustive. Remember, funders litigate all day every day and see this all the time. The claimant does it maybe once in a lifetime, the tables are stacked against. Beware and be vigilant. Do not take any thing for granted. Open eyes 👀 Remember, funders need claims - no claims, no business. They may not need claimants but the claim is yours, so that’s the leverage (owning the IP). With the new LFA Bill, which is nothing but a value transfer from claimants to funders, Alex Chalk KC MP Harry Chancellor are trying to remove what little regulation the Supreme Court clarified was relevant in PACCAR. (How is that “access to justice”?) And Nicholas BACON KC who does work for funders regularly will make recommendations on future regulation😂 THE ASSOCIATION OF LITIGATION FUNDERS OF ENGLAND & WALES Harbour Therium Capital Management Omni Bridgeway Portland DRD Partnership Hanbury Strategy

LFJ Member Spotlight: Ed Gehres of Invenio LLP Invenio LLP Co-Founder and Managing Partner Ed Gehres has worked on all sides of the litigation finance marketplace. Ed began his career as a defense-side trial lawyer at AmLaw 100 firms, then started doing plaintiffs-side work, served as a partner and practice group leader, and then developed a transactional practice that led to his work as General Counsel of an investment platform that had multiple litigation finance and services companies. Ed co-founded Invenio LLP to help level the playing field for civil justice. The firm works at the intersection of plaintiffs, the law firms that represent them, and the investors who see that they get their day in court. Leveraging this broad base of experience as litigator, lender, deal lawyer, and law firm leader, Ed now focuses on helping law firms and claimants navigate complex litigation finance transactions.  Since Invenio LLP was founded in January of 2022, the firm has advised on nearly $500 million in credit transactions involving legal assets and has developed an emerging practice involving alternative business structures. Company Website: www.inveniolaw.com Year Founded: 2022 Headquarters: Invenio is headquartered in Washington, D.C. and has offices in Ft. Lauderdale, FL and Phoenix, AZ. Area of Focus: Invenio LLP is fully engaged in all aspects of the rapidly emerging litigation finance industry. The firm’s founding partners have each worked on multiple claimant funding and law firm loan transactions and have themselves litigated cases where law firm portfolio funding or third-party case funding was used. Our clients are law firms borrowing for their cases or portfolios, claimants seeking traditional third-party funding, lenders and insurers seeking assistance with underwriting and servicing of cases or portfolios of cases, and parties to litigation finance-related disputes or distressed transactions. We focus on case & portfolio underwriting; borrower & claimant-side representation; alternative business structures; and pre-settlement, post-settlement & medical lien funding. Member Quote: “I’ve shifted gears multiple times in my career. But I truly believe it was all leading to this important work in litigation finance. This is about ensuring access to the civil justice process. I view it as a life’s work.” https://lnkd.in/em2ekE5t #litigationfinance #litigationfunding #legalfinance #legalfunding #litfin #thoughtleadership

The Legal Landscape continues to evolve with next generation strategies across all practice areas. Commercial Litigation can be time consuming and require extended hours in research and support throughout the lifecycle of the process. Many firms are exploring how working with Legal Process Outsource Providers can make a positive difference.   BeeSeen Legal is a provider of Legal Process Outsourcing (LPO) for law firms and companies across the US. We offer Actual Attorney’s to support the entire Paralegal Function at a Fraction of the Price. Supported by a team of professionals with over 25 years of experience we create customized solutions clients can utilize to help increase efficiencies and revenues. At BeeSeen Legal we believe in showcasing our expertise to partners by providing access to a Free Trial on Services with NO-Obligations. Click below link now to know more:  https://lnkd.in/gXfDPyYB To Schedule a Free Consultation: legal@beeseensolutions.com 631-777-8811 BeeSeen Legal BeeSeen Solutions Duane Morris LLP Hale Law - Accident Attorneys Suris & Associates, P.C. Rojas Law Group Barnes Law Group LLC Ropes & Gray LLP American Verification Processing Solutions (AVP Solutions) American Legal & Financial Network "ALFN"Legal Dive Morgan, Lewis & Bockius LLP Morgan & Morgan, P.A. Bentley Goodrich Kison Mills & Edwards, LLP Commercial Law League of America - CLLA DebtLink TrendzAct Doelger Law Weltman, Weinberg & Reis Co., LPA Phyton Talent Advisors VSG Business Solutions Talent Store KPMG US Huron Brian Cutrone RocketNode Hosting Paul Vallario Nick Lorio Joseph Greco Patrick Pinto Laura David Balekian Hayes, PLLC Arent Fox Robert Hirsh Windels Marx Lane & Mittendorf, LLP #beeseenlegal #LPO #CommercialLitigation #legalprocessoutsourcing #legaloutsource #law #lawfirm #research #attorneysupport #compliance #increaserevenues #contractlaw #IP #personalinjury #estate #probate #trusts #transportation #patent #LegalTransformation #NextGenLPO #LegalServices

Family offices interested in tapping into the litigation finance market often partner with specialized firms with robust legal expertise and underwriting capabilities. These firms conduct extensive due diligence, applying sophisticated analytical tools to estimate the likelihood of success and potential return profiles of various legal disputes. By leveraging this expertise, family offices can gain exposure to carefully vetted opportunities that align with their return objectives and risk tolerance. Investing in litigation finance does involve a significant amount of risk. However, family offices equipped to manage this risk—by engaging with reputable litigation finance firms and building a diversified portfolio of litigation investments—can potentially realize considerable returns. A carefully curated portfolio mitigates the idiosyncratic risk of any legal case while still targeting the high-return opportunities for which the asset class is known.

Do you think litigation finance is transforming the strategic landscape for in-house legal teams? Join us for a groundbreaking session at LF Dealmakers | European Edition on April 18-19 in London that delves into the corporate world's adoption of litigation finance, exploring its nuances, strategies, and real-world applications: ⭐ THE IN-HOUSE PERSPECTIVE: "TO BE OR NOT TO BE" FUNDED. ⭐ This session is designed for those on the front lines of legal strategy within their organizations, offering a deep dive into when and how litigation finance can be leveraged most effectively. Our panel of seasoned in-house professionals will share their insights on use cases, the mechanics of funding for defense, and strategies for overcoming common challenges to get internal buy-in. Speakers: Zachary Krug, Managing Director, Legal Assets, NorthWall Capital (Moderator) Geoffrey White, General Counsel & Chief IP Counsel, SilcoTek Corporation Lucy Wojcik, Chief IP Officer, Ocado Group Koenraad Wuyts, Chief IP Officer, KPN Whether you're contemplating litigation finance for your organization or looking to deepen your understanding of its impact, this session promises invaluable insights and networking opportunities. --- 🌐 **LF Dealmakers | European Edition Highlights:** Expanding upon six years of unparalleled success in New York, we are thrilled to introduce our premier event to the European audience. Set against the backdrop of the elegant Royal Lancaster London on April 18-19, this exclusive gathering is where industry titans, innovators, and stakeholders converge. **Why Attend?** - Connect with a curated group of litigation funders, lawyers, barristers, insurers, advisors and other stakeholders - Arrange 1-to-1 meetings to discuss business - Hear the latest on industry developments and trends - Gain insights and practical advice from industry leaders **📢 Act Now: Seating Is Limited!** 🔥 Reserve your spot now and join a conversation that could redefine your approach to litigation finance. For registration and more details, visit: https://lnkd.in/eMSNVx29 #LitigationFinance #InHousePerspective #CorporateLaw #DealmakersForums #LegalInnovation

McEwan Partners is pleased to be listed by Lexpert® as a “Most Frequently Recommended” Vancouver Firm for Litigation ­– Corporate Commercial. Lexpert’s extensive peer review process is designed to identify leading practitioners nationwide.   McEwan Partners is also recognized in "2024 Commercial Litigation Lawyers Who’s Who: Vancouver" and the firm is ranked for matters related to Securities Law and Class Actions. To review the full McEwan Partners profile, please visit: https://lnkd.in/g3PZzppa Lexpert-Ranked Lawyers: Ken McEwan, K.C., Bob Cooper, K.C., and Emily Kirkpatrick were among Lexpert-ranked lawyers in the 2023 Lexpert Special Edition on "Canada’s Leading Litigation Lawyers" and continue to be recognized and recommended for the practice areas noted below in 2024: Ken McEwan, K.C:   Most Frequently Recommended • Litigation – Corporate Commercial Repeatedly Recommended • Litigation – Directors’ & Officers’ Liability • Litigation – Securities Lexpert® /American Lawyer Guide to the Leading 500 Lawyers in Canada • Vancouver Leading Practitioners – Most Frequently Recommended      o Litigation – Corporate Commercial   Bob Cooper, K.C:   Consistently Recommended • Litigation – Corporate Commercial   Repeatedly Recommended • Litigation – Securities   Emily Kirkpatrick Repeatedly Recommended • Litigation – Corporate Commercial