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Parabellum Capital Raises $450 Million Ahead of Covid-19 Suits

May 26, 2020, 12:36 PM

Litigation finance firm Parabellum Capital has raised a new fund with commitments exceeding $450 million, raising cash ahead of a potential torrent of coronavirus-related lawsuits and providing fresh evidence the industry remains popular with investors.

Virus Lawsuits: “There will be a slew of litigation that will derive from this experience,” Parabellum CEO Howard Shams said in an interview, referring to the pandemic.

Supply and Demand: Shams said litigation funders face “commoditization” as the amount of capital in the U.S. committed to finance commercial litigation has grown to roughly $10 billion. But he said the coronavirus has also eliminated some competition. Roy Strom has the story.

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DAILY BRIEF


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Legal Tech

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Judiciary

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Follow Bloomberg Law’s global coverage of the coronavirus pandemic on our Coronavirus Outbreak channel, and track the latest changes in the federal court operations with our interactive map.

WAKE-UP CALL


Associate Hourly Rate Tops $1K Amidst Bankruptcy Surge
In today’s column, a Big Law firm sparked anger by announcing Covid-19 pay cuts right before the long weekend; Morgan Lewis hired a four-lawyer (two-partner) investment funds team from MoFo in London; San Francisco-based corporate immigration firm Berry Appleman & Leiden is number one on the latest Diversity Scorecard; car rental company Hertz filed for bankruptcy Friday; Norton Rose Fulbright is planning a gradual return to its offices but also a permanent flex-work scheme; the judge who wants to review the DOJ’s dismissal of Michael Flynn perjury charges hired a trial attorney for advice.

PRACTITIONER INSIGHTS

INSIGHT: Litigation Finance Could Be a Lifeline During Pandemic
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INSIGHT: Patent Ruling Begs the Question—What Is a Natural Person?
The U.S. Patent Office’s ruling that AI systems can’t be listed as an inventor on a patent leaves unanswered questions, and will likely not be the last word on the issue, McDermott Will & Emery attorneys say. They examine the status of AI and robotic personhood and questions surrounding the definition of a “natural person.”

INSIGHT: Minimizing Litigation Risks From Valuation Disputes During Covid-19
Valuation disputes may be just one face of an impending wave of litigation this year due to Covid-19 volatility, but they will be an important area, attorneys from Kobre & Kim write. Rather than take a “wait and see” approach, parties facing valuation disputes should move early, deliberatively, and creatively and conduct litigation analysis to be in a better position should litigation ensue.

INSIGHT: It’s Not Too Early to Plan a Presidential Transition
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INSIGHT: What’s at Stake in EPA’s MATS Finding Reversal
The EPA’s recent rule concerning the Mercury and Air Toxics Standards (MATS) determines it’s not necessary to regulate “hazardous air pollutants” (HAPs) from power plants. Ballard Spahr’s Brendan Collins says the agency’s action has please no one and that MATS will likely remain in effect while litigation plays out.

INSIGHT: DOJ Ramps Up Crypto, FCA Enforcement Efforts During Covid-19
Top Justice Department enforcement trends have shifted since the arrival of the Covid-19 pandemic to focus on frauds involving testing, cryptocurrency, and False Claims Act violations, Baker McKenzie attorneys write. They also cite growing cooperation among U.S. attorney’s offices and state authorities, and say companies need to ensure they have strong compliance programs in place.

WORKFLOWS

Kilpatrick Townsend’s Litigation Department added associates Hannah Corning (Dallas) and Caitlin Trevillyan (Washington) | Thomson Snell & Passmore has appointed Joanna Pratt as senior partner effective June 2020 | GrayRobinson hiredNatalie R. Wilson as a shareholder in Lakeland, FL; her focus will be on Elder Law, Estate Planning, Medicaid Planning, Probate, Trusts, and Wealth Transfer | Lewis Brisbois recently added Andrew Gendron as a partner in the Complex Business & Commercial Litigation Practice in Baltimore from Venable LLP.

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To contact the reporter on this story: Bruce Kaufman in Washington at bkaufman@bloomberglaw.com

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