Funder C.A.T. – Ho!

How should a court go about determining what is a reasonable return for a litigation funder in the UK’s collective proceedings regime? This article considers that question and examines some of the methods funders use to underwrite and price investments in opt-out class actions in the Competition Appeal Tribunal. ‘ We strongly oppose this reported settlement which was struck without our agreement. It is both too low and premature’. These words, made in a statement issued by Innsworth Advisors Limited, followed the announcement on 3 December 2024 that Walter Merricks CBE had agreed to settle his long-running interchange fee litigation with Mastercard. This article also considers how the Tribunal might approach the proposed settlement agreement in the Merricks case and the possible implications of the public fall out between a litigation funder, class representative and its lawyers at a time when the funding industry is under the spotlight.