It is impossible to separate the future direction and trends of litigation funding from the broader movement of the litigation sector itself, as investors are naturally drawn towards those areas that are increasing in both activity and financial value. A new blog post from one of the industry’s leading insurers offers predictions for the litigation trends in the UK we should expect to see for the rest of 2023.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
It is impossible to separate the future direction and trends of litigation funding from the broader movement of the litigation sector itself, as investors are naturally drawn towards those areas that are increasing in both activity and financial value. A new blog post from one of the industry’s leading insurers offers predictions for the litigation trends in the UK we should expect to see for the rest of 2023.
The blog post released by Harbour Underwriting examines the current state of UK litigation and suggests what areas funders may be pursuing most actively. Unsurprisingly, competition claims are highlighted, citing the 10 Collective Proceedings Orders (CPOs) that have been already approved by the Competition Appeal Tribunal (CAT), along with the 24 opt-out CPO applications which began in 2022. A spectre remains over UK competition claims, with the upcoming Supreme Court decision likely impacting how these claims can be funded by third parties.
The article goes on to spotlight securities class actions as another major area of focus, with high profile cases likely setting the stage for even more activity if they reach successful outcomes. Similarly, fraud-based litigation is seen as a potential growth area, fueled by the aftermath of the pandemic, and which has already seen claims being brought against companies who allegedly misused government loans.
As has been discussed by other industry commentators, insolvency litigation is also expected to be a significant trend in 2023, given the current economic instability that has put additional pressure on companies already struggling to recover from the effects of Covid-19. Whilst ESG litigation is always of interest to funders, Harbour Underwriting highlights the variety of cases that exist under this broad umbrella, and suggests the sector will remain a prominent target market for litigation funding.
Finally, mergers and acquisition litigation is offered as another trend, with the author speculating that a rise in the number of deals, as well as the speed of those transactions, could pave the way for litigation focusing on ‘valuation and warranty disputes and claims for misrepresentation.’
