Longford Gets Arbitrator in Clash Over $100 Million Patent Pact

Arigna Technology Ltd.’s case against a litigation funder over the distribution of a $100 million settlement from a patent-enforcement campaign was paused by a federal judge while an arbitrator determines what issues are within its jurisdiction to resolve.

Longford Capital Fund III LP—a private investment fund managed by Chicago-based Longford Capital—can use an arbitration provision in Arigna’s agreement with the law firm Susman Godfrey LLP, which represented Arigna in the patent-enforcement litigation, according to Judge Gregory B. Williams’ opinion issued Wednesday in the US District Court for the District of Delaware.

Longford is seeking $32 million from the settlement paid ...