Eyeing Funders in a Settlement Opt-Out: Litigation Finance

Happy Friday! In March, I wrote a story about a judge ordering people opting out of a $2.8 billion antitrust settlement with Blue Cross Blue Shield to disclose whether their decisions were motivated by litigation funders.

Shortly after, the judge allowed those disclosures to be submitted confidentially, so the public never learned the outcome. The case involves hospitals, physician groups, and other healthcare providers who said the insurer shortchanged them on reimbursements.

Attorneys representing the providers haven’t forgotten those who opted out.

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On Monday, they filed a motion for an order putting payments in escrow for those who opted out of the case. They suggested 12.5% of any of the op-out awards should go toward compensation for their work.

The motion quotes those who attended a webinar hosted by litigation funder Burford Capital about opting out of the settlement. Charles Griffin of Burford said that counsel won a some significant rulings that would restrict the number of defenses that could be raised.

Industry announcements

Two litigation finance brokers, Rebecca Berrebi and Ted Farrell, announced they’re joining forces to form Litigation Finance Advisers. They will advise law firms, plaintiffs and corporations on litigation finance deals and also provide guidance for investors and funders.

European and Latin American funder Loopa Finance joined the European Litigation Funders Association. ELFA is one of the industry trade groups that represents the commercial litigation funders in Europe.

CNO Financial Group will take a minority stake in private credit manager Victory Park Capital and provide $600 million in capital commitments to new and existing VPC investment strategies. VPC specializes in asset-backed lending across multiple platforms, including litigation finance.

What I’m Reading

The Washington Post reported that Wall Street investors are buying claims for potential tariff refunds. Some hedge funds and specialized investment firms are offering immediate cash for importers while collecting the rest of the refund if the Supreme Court invalidates the tariffs.

Commentary & Opinion

Big Law Leans Left—and Is Moving Further Left, Research Shows

Big Law attorneys’ and staff’s political contributions skewed further Democratic in the 2023–2024 period, according to new data—possibly reflecting an incumbency advantage or a reaction to the Jan. 6 US Capitol riot.

Why One Securities Appeal Deserves the Supreme Court’s Attention

Two securities certiorari petitions are pending at the Supreme Court, and one of them concerning materiality should get a high court hearing.