News & Blog

ILR President: “Only the UK Supreme Court Can Now Prevent a US-style Litigation Monster”

In a Law Society Gazette commentary piece, Lisa A. Rickard, the president of the U.S. Chamber Institute for Legal Reform, said a case potentially before the UK Supreme Court is the only thing separating the UK legal system from a “US-style litigation monster”. Merricks v. Mastercard, a £14 billion collective action lawsuit, represents the first true test of the Consumer Rights Act of 2015, which created a collective action mechanism in the UK.

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US Litigation Funder Backs Massive Mastercard Lawsuit

A US-based litigation funder announced this week it will fund the £14 billion lawsuit against Mastercard, with an eye towards a massive payday. Innsworth Litigation Funding, which is owned and funded by the well-known New York hedge fund Elliot Management, said it would fully fund the largest class action case in the UK, which was revived after first being rejected by the Competition Appeal Tribunal.

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Litigation Funding Fueling Rise of Australian Class Actions

Five Australian law firms have threatened to sue a single company. If they all file, this would be the most class actions against one company in Australian history. Reuters recently called this an “unprecedented class-action feeding frenzy.” What you’ll also notice in that article is how litigation funders are backing these lawsuits and looking to make a profit.

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Litigation Funder’s Stock Price Skyrockets

Burford Capital, a third party litigation funding firm, announced that its stock just gained 29.4 percent in value. The firm, which makes its money investing in lawsuits, took in £244.3 million ($341.2 million) in revenue last year, according to Shares Magazine, which is about 20 percent more than what was forecast. Burford’s investments reportedly returned 75 percent on invested capital (Shares Magazine says just a 15 percent rate is the sign of a “good quality business”) and 31 percent internally.

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