GAO Report on Patent Funding; Mastercard Settlement Drives Mixed Reactions; TPLF in Spain; ILFA 'Mythbusts' Calls for Regulation; 2024 Recap Event...
Legal Funding Journal
The leading community-based thought leadership platform informing and engaging the global legal funding sector.
The following is an excerpt from our free weekly LFJ newsletter. Subscribe here and get even more of the latest news in legal funding. Delivered straight to your inbox every Friday.
Be sure to join the conversation below and let us know your thoughts on this week's developments in legal funding!
GAO Publishes Report on Patent Litigation Funding
A new report published by the US Government Accountability Office Office (GAO) shines a spotlight on the world of third-party funding for patent disputes, reviewing recent developments in the sector and garnering insights for industry stakeholders. The report, which is titled ‘Intellectual Property: Information on Third-Party Funding of Patent Litigation’, was delivered to the Senate Judiciary Committee’s Subcommittee on Intellectual Property.
The report reviewed third-party reports from Unified Patents, RPX Corporation, and Westfleet Advisors, whilst also analysing data from the Stanford NPE Litigation Database. Furthermore, the GAO reviewed a dozen patent litigation cases and reviewed academic literature on the subject.Explaining why the study was conducted, the GAO highlighted the ‘limited’ amount of publicly available data on third-party funding of patent litigation, and the concerns raised by stakeholders around the extent of the practice amid the general lack of formal disclosure of funding.
Settlement Agreement in Mastercard Claim Sees Divided Reactions From Class Representative and Funder
Reporting by the Financial Times reveals that a settlement agreement in principle has been reached in a consumer claim brought against Mastercard, with the provisional settlement reportedly reaching around £200 million. The legal action, which was brought by class representative and former financial ombudsman Walter Merricks, focused on allegations that the payments company had been charging excessive fees on card transactions. With the claim representing up to 46 million consumers, the settlement is reportedly worth around £40 to £50 for each class member.
A separate article in The The Law Society Gazette provided additional reporting on the reactions of the various parties to the provisional settlement. A spokesman from the claim’s funder Innsworth Advisors Ltd. said that the settlement was reached without their agreement, and that “it is both too low and premature.” Boris Bronfentrinker, a partner at Willkie Farr & Gallagher LLP questioned the motives behind Innsworth’s objections, arguing that their objection “has to do with advancing the interests of UK consumers, and is all about funder greed.”
Thurs. Dec 12, A Virtual Town Hall: 2024 Recap / 2025 Outlook starting at 12pm EST
In early 2024,#legalfunding industry leaders shared their predictions for the year ahead.
They foresaw:
📈 Growth in #insurance markets like judgment preservation policies.
💼 An uptick in #bankruptcies driving creative funding strategies.
🔍 Continued debates over #regulation and transparency.
💵 Rising interest rates reshaping deal structures and pricing.
🔄 Expansion of the #secondary market for #litigationfinance claims.
Now, as 2024 wraps up, it’s time to ask: How accurate were these predictions?Join us for a LinkedIn Virtual Town Hall this Thursday, December 12, as we recap this year’s trends and look ahead to what’s next in 2025. Don't miss it!
Link to register: https://lnkd.in/gXh3Rsbe
Mythbusting the Call for New Regulation of TPLF
In a recently contributed piece by Rupert Cunningham, Director for Growth and Membership Engagement at the International Legal Finance Association (ILFA), concerns are raised about recent calls for increased EU regulation of third-party litigation funding. These calls, led by the American Chamber of Commerce to the European Union (AmCham EU), Business Europe, and their co-signatories, include allegations ILFA describes as misleading and inaccurate.
Cunningham argues that these recurring calls are driven by large corporations seeking to limit access to justice for individuals harmed by their misconduct. ILFA firmly opposes these claims, highlighting inaccuracies in the narrative. Read the full article for some of the most common misconceptions are addressed.
The First Collective Work on Third Party Funding in Spain is Presented by Ramco Litigation Funding and ICADE University.
The book La Financiación de Litigios en derecho español y comparado: estado del mercado y su regulación, (Third Party Funding in Spanish and Comparative Law) published by ARANZADI LA LEY, is being presented by Ramco Litigation Funding and ICADE University.
This book provides a comprehensive overview of the growing litigation finance market in Spain. Authored by 21 leading experts, including professors, lawyers, and funders, this book explores the status, nature, and regulation of litigation funding in Spain and beyond. It also examines the benefits of this tool, such as "dynamising the legal sector and providing better access to justice."
The book has been published in Spanish and will be published in English language at the beginning of next year. Since the first funders entered Spain in 2017, Litigation Finance has seen exponential growth year on year, following the trend observed in other countries. Spain is the fourth country in its use in Europe, after the United Kingdom, Germany and the Netherlands, as indicated in the European Parliament report.
In recent years, the Spanish market has experienced a growing demand from companies, law firms and individuals, who see Litigation Finance as a tool to monetize their legal assets, reduce costs and manage risks.
People Moves
Fenchurch Legal Appoints Ranil Jayawardena as Non-Executive Director
Fenchurch Legal, a specialist in litigation funding for small and medium-sized UK law firms, has strengthened its board with the appointment of The Rt Hon Ranil Jayawardena as a non-executive director. This appointment reinforces Fenchurch Legal’s strategic priorities of bringing independent views to its board, which enhances its governance processes, risk oversight, and decision-making capabilities.
As a former Cabinet Minister and Member of Parliament for North East Hampshire, Ranil Jayawardena brings a distinguished track record. During his tenure in government, he held key positions, including International Trade Minister and Environment Secretary, where he worked on post-Brexit trade agreements, national infrastructure, and agricultural policy.
Louisa Klouda, CEO of Fenchurch Legal, said: “We are delighted to welcome Ranil to the board as we embark on our next phase of growth. Ranil’s knowledge and experience of regulation and financial services, alongside his experience as a Non-Executive Director on other boards, will be invaluable during this important time. Ranil’s external oversight will complement our existing board, enhancing our focus on strong governance and risk management.”
Harris Pogust Steps Down from Chairman of Pogust Goodhead
In a post on LinkedIn, Pogust Goodhead announced that Harris Pogust has retired from his role as Chairman of the global law firm, following his move to step back from being actively involved in UK cases in March of this year. The announcement explained that Mr Pogust will continue working with his US law firm and as President of the non-profit organization Trial Lawyers For A Better Tomorrow, which works to raise money to help children and support access to education.
Regarding his departure, Mr Pogust commented “Over the past six years we have built Pogust Goodhead into the world’s premier group litigation firm. We have helped defend the rights of those who cannot defend themselves against the misdeeds of big business..."
Thomas Goodhead, global managing partner of Pogust Goodhead, also provided the following statement celebrating Mr Pogust’s contribution to the firm: “Without Harris, founding this firm would never have been possible. He has played a fundamental part in getting us to where we are today. I cannot thank Harris enough for everything he has done for me personally, for the firm and for our clients..."
Jason Bertoldi Joins Alliant Insurance Services
Jason Bertoldi, formerly the Head of Contingent Risk Solutions for Willis Towers Watson, announced that he has joined Alliant Insurance Services and taken up the position of Global Team Leader for Litigation & Contingent Risk Insurance.
In a post on LinkedIn, Bertoldi announced that he is joining Alliant from WTW, where he served for the past two years. He also brings experience from both the legal and financial services industries, having begun his career at Susman Godfrey before moving to The D. E. Shaw Group.
Subscribe to LFJ's FREE weekly newsletter and you’ll also get the latest in job postings.
Join the conversation below and let us know your thoughts on this week's developments in legal funding 👇