We’re spilling all the tea this week on the latest episode of ILR’s Cause for Action Podcast.
ILR Senior Vice President for International Affairs Scevole de Cazotte sits down with Stuart Clark, a respected Australian attorney, law professor, part-time firefighter, and longtime ILR consultant. The pair gives us a deep dive on third party litigation funding (TPLF) in Australia, from how the land down under became the birthplace of TPLF to what the federal government is trying to do to regulate the industry. We knew TPLF was profitable, but Stuart fills us in on just how much money the funders are making – an average return on investment per annum of 400%. Stuart also reports that the funders have a 96-98% success rate and are making returns 10x the global average for hedge funds. TPLF is driving an explosion in class action litigation in Australia, but the funders are taking unconscionable cuts of the eventual awards or settlements, leaving the claimants with next to nothing. The industry is brimming with fraud and abuse, and the Australian government has finally taken notice.