News & Blog
A group of class action lawyers in Australia “are facing a criminal investigation and a damages bill of more than $11.7 million for ‘dishonourable’ and ‘fraudulent’” conduct, reports the Australian Financial Times. The lawyers and litigation funder involved attempted “to claim more than $19 million in legal and funding fees from a group of elderly investors in the Banksia class action.”
Last week, the Australian Financial Review featured an op-ed written by Stuart Clark, an adjunct professor at Macquarie Law School and former president of the Law Council of Australia, that highlights the need for reforming Australia’s litigation funding industry.
he Australian Federal Government is looking to put an end to the excessive fees charged by class action litigation funders and lawyers. On September 30, the government released its long-awaited proposals for the regulation of the litigation funding industry.
Litigation crowdfunding has the potential to take the already serious ethical and practical problems with litigation funding and multiply them by injecting dozens – perhaps hundreds – of mystery investors in civil lawsuits. In the interest of consumers, decision makers must not allow this trend to continue unchecked.
Litigation funders in Germany are adapting to the growing number of international litigation funding firms setting up shop in the country, and developing their own cash streams.
London law Firm Mischon de Reya has teamed up with litigation funder Harbor to create a £150 million litigation funding arm, reports the Law Society Gazette.
“[P]atchy regulation coupled with fertile ground for conflicts adds up to a troubling outlook that needs more scrutiny.”
For litigation funder Burford Capital, “accounting is a fraught topic,” reports the Financial Times.