Argentum exits the Association of Litigation Funders

It isn’t so long since the litigation funding market felt the shockwaves reverberating from Mr Justice Christopher Clarke’s judgment in the Excalibur v (1)Texas Keystone; (2) Gulf Keystone ruling. The case was thrown out and two of the three funders behind Excalibur’s case were exposed as being insolvent.

All this raised some serious questions about the state of the domestic funding sector. The Association of Litigation Funders sought to crack the whip by introducing a code aimed at clamping down on risky players.

The new image has been put to the test this week after allegations that funder Argentum is a Ponzi scheme in disguise. Its financial backer, Centaur Capital, is under investigation by the Hong Kong authorities because of claims that it is a £90m Ponzi scheme run by Briton Brendan Terrill.

This is the fund that had backed the group litigation order against Royal Bank of Scotland, which is currently being pursued by Stewarts Law.

Argentum has left the ALF, leaving the association to fight another day.

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