What is Litigation Funding?
Litigation funding is all about access to justice. It enables the victims of corporate misconduct to seek reparation without the risks, costs and inconvenience of managing the litigation themselves.
We offer, in selected cases, to completely underwrite the cost and risk of litigation in return for a commission, payable only if the claim is successful. This includes paying the defendants costs if the case is unsuccessful.
Litigation funding promotes the private enforcement of competition and securities laws recommended by the European Commission in its White Paper.
What are "Multi Party" (Class Action) Claims?
Multi Party means significant numbers of potential claimants, principally:
Cartel cases and other breaches of competition law
CFI is currently underwriting the European claim for victims of the global air freight cartel. It is believed that the fuel, war risk and security 'surcharges' imposed by the cartelist airlines inflated the true market price of international air freight by about 10% between 2000-2007. Businesses who have paid too much can seek a refund without the worry, cost and risk of claiming against the airlines themselves.
Corporate misconduct causing losses to shareholders
Sometimes companies fail to reveal to the market the truth about factors which may adversely affect profit predictions, production schedules, revenue, product quality etc, so as to protect the value of company shares. Investors purchase shares taking into account corporate statements and when the truth emerges the share price often crashes. CFI can underwrite action by investors who lose money as a result of corporate misstatements.
Illegal conduct affecting large groups of investors
Unfortunately the global recession has revealed that sometimes the leaders of corporations engage in fraudulent conduct designed to dupe investors. If the claim is assessed as being viable financially (sufficient assets or perhaps insurance) then CFI can support litigation to retrieve something for the investors.
