Category Archives: Regulatory Issues
Immunity from Lawyer Malpractice – Uniquely Australian
The following article was contributed by Valerie Blacker, a commercial litigator focusing on funded litigation, and John Speer, a lawyer in the Dispute Resolution and Litigation Team at Piper Alderman.
While large class actions receive the lion’s share of media attention, litigation financiers also regularly fund litigation involving a single plaintiff. Given that solicitors are required to maintain professional indemnity insurance, they can be, in instances of negligence, an attractive prospect for financiers: they are well-resourced and have the capacity to satisfy any judgment awarded against them.
DAF Appeal in UK Supreme Court Could Endanger Third-Party Funding
As the European Union considers proposals for enhanced regulation and oversight of third-party litigation funding on the continent, there has been much speculation that the UK’s litigation finance industry could benefit from representing a more welcoming market. However, an ongoing appeal by the defendant in two group claims has the potential to disrupt the status…
Partner Resistance and Regulatory Uncertainty Remain Hurdles for Adoption of Alternative Business Structures
In recent years, we have experienced the relaxation of rules governing ownership of law firms in a small number of states, beginning with Utah in 2020 and Arizona in 2021. However, despite these developments, there has yet to be a wider adoption of Alternative Business Structures (ABS), with industry commentators suggesting that resistance to change…
UK Litigation Funding Market Could See Growth if EU Imposes Restrictions
The shadow of the Voss Report’s recommendations looms over the future of litigation funding in Europe, as firms evaluate where the best opportunities will be in 2023. As some in the industry fear that overly zealous regulation of the practice could seriously hamper funder activity in the European Union, there is growing speculation that the…
Increased Transparency in Litigation Funding Could Aid Policymakers
Calls for increased transparency in the litigation finance industry are being brought by opponents of the practice, with the aim of forcing funders to disclose detailed information around funding agreements that they would prefer to remain confidential. A new op-ed argues that a measured and appropriate level of transparency would enable lawmakers to develop smart…
Legal Professor Refutes Arguments Against Foreign Funding of U.S. Lawsuits
Among the various criticisms faced by the litigation funding industry, one that has found a resurgent voice in recent months has been the claim that allowing third-party funding of lawsuits in the U.S. is a threat to national security where foreign investors are financing lawsuits. This critique has been leveled by the Chamber of Commerce…
EU Representative Action Directive Could Generate New Opportunities for Funders
Analysis of regulatory development in the European Union has largely focused on the potentially negative consequences of the proposed changes outlined in the Voss Report. However, there is equal opportunity for the EU’s Representative Action Directive to generate a wave of group action activity across the continent, with funders able to capitalize on these forthcoming…
Amicus Capital Highlights the Ethical Nature of Litigation Funding
Critics of litigation funding often cite a myriad of reasons why the practice should come under increasing regulation, claiming it lacks transparency and that funders exert control over the litigation process. However, proponents of the industry are not remaining silent in the face of these arguments, with one funder highlighting the ethical nature of third-party…
Court Ruling Reinforces Principle of Confidentiality Between Plaintiffs and Funders
Disclosure remains one of the hottest topics in the world of litigation funding, as courts, legislators and pressure groups are all weighing in on the level of transparency that should be required for funding arrangements. However, a recent ruling from the Eastern District of Texas has reinforced the principle that funders and their clients should…
AxiaFunder Receives Direct Authorization from FCA
AxiaFunder, the innovative litigation funding platform, has achieved a new milestone in the company’s trajectory, as it has been granted direct authorization from the Financial Conduct Authority (FCA) in the UK. This latest step follows a strong 2022 for the funder, having launched a new portfolio product in July of last year….
