LONDON, Jan 14 (Reuters) - Litigation insurance broker ILF Limited and alternative assets adviser IGS Group said on Wednesday they had launched a joint venture partnership that will raise funds to invest in corporate litigation cases.
Independent Litigation Funding LLP will aim to raise up to eight new funds this year, each of around 20 million pounds ($29 million), and finance mid-sized corporate litigation cases brought before UK courts.
The launch comes as corporate litigation becomes an increasing issue, amid huge investor losses, corporate failures and allegations of fraud.
“Significant investors’ losses in most securities, coupled with the collapse of many of the global investment banks that structured and sold these securities, has given rise to an environment where proving the ultimate ownership of underlying loss-making or defunct securities has become imperative,” the firms said in a statement.
Typical claim values will range from 500,000 pounds to 3 million pounds but can reach up to 6 million pounds. all of which would be fully insured against loss.
Cases are likely to take an average of 9-to-18 months to reach trial or settlement, and most are likely to settle in advance of court action, the firms said.
This week Richard Fields, chief executive and co-founder of New York-based Juridica Capital Management, which runs London-listed litigation investment firm Juridica JIL.L, told Reuters that opportunities were growing for his firm in current markets.
“With the recession there are a lot of opportunities available to us,” he said. (Reporting by Laurence Fletcher, editing by Will Waterman)