New Competition, and Recognition, for Litigation Funders
Juridica, another publicly traded commercial litigation funding company, also drew some unwelcome attention when its $3 million funding of an ICSID dispute against Romania became the focus of a fraud claim.
Such turbulence hasn't deterred the funders from taking on more high-profile international cases. A recent study in the Georgetown Law Journal noted several ICSID awards in the past few years where third-party funding played a role, including disputes against the Hashemite Kingdom of Jordan; Grenada; and the Republic of Georgia. In 2012, Oxus Gold plc announced that it had tapped seven-year-old Calunius Capital LLP, a UK litigation financier, to fund an arbitration against the Republic of Uzbekistan. The co-founder of Calunius, Mick Smith, estimated in December that just the best-known six third-party funders have raised more than $1 billion since 2007, with more than half used for arbitrations.