Major players in the litigation funding industry are resisting a proposed amendment to the local civil rules of the Northern District
of California that would require plaintiffs who litigate in that forum
to disclose whether their suits are backed by third-party investors.
Promulgation of a rule requiring such disclosures could have a
nationwide effect, including opening doors to the possibility of
promulgation of a similar rule within the Federal Rules of Civil
Procedure, the rules that govern procedures in all federal trial
courts in the country.
See full article at TheRecorder
Summarized by Meghan Hallinan
Litigation funders’ traditional cloak of confidentiality was recently ordered to be removed from a litigation funding firm by a federal judge presiding over the putative class action Gbarabe v. Chevron.
The District Court for the Northern District of California granted Chevron’s motion seeking to require the plaintiff to produce a funding agreement between attorneys for the putative class and Therium Litigation Funding IC, whereby Therium invested $1.7 million in the outcome of the litigation.
In light of the class action nature of the litigation, the Court adopted Chevron’s argument that disclosure of the information regarding third-party funding was necessary to evaluate the adequacy of class counsel, which is one of the elements that a Court considers in determining whether a lawsuit should proceed as a class action.
See full article at LegalNewsLine.
Summarized by Jonathan Winsley
COOK COUNTY RECORD – Oct.18 – Ex-employees have sued Oasis Financial company. The litigation finance company funds money to individuals. Oasis is claimed to overwork their employees overtime pay, and also enforced employment agreements preventing former employees to work with competitors for as long as two years.
According to the lawsuit, Oasis required employees (Tyler Beauchamp and Trevor Scott) to work 10+ hour days, five days a week. They were and “discouraged from taking lunch breaks.” The lawsuit also alleges that the company did not pay to compensate for the added work hours, and paid no overtime.
Damages assessed to Oasis includes twice the amount of unpaid overtime hourly wages, statutory damages, punitive damages and attorney fees.
By Jonathan Bilyk
See full article at CookCountyRecord
Summarized by Walter Langkowski