Burford Capital
 | |
| Company type | Public |
|---|---|
| LSE: BUR NYSE: BUR | |
| Industry | Financial services |
| Founded | 2009 |
| Founders | Christopher Bogart Jonathan Molot |
| Headquarters | Guernsey |
Key people | Christopher Bogart (CEO)[1] Jonathan Molot (CIO) |
| Products | Litigation finance |
| Website | www |
Burford Capital is a financial services company that provides specialized finance to the legal market. Founded in 2009, it offers financing to corporate legal departments and law firms engaged in litigation and arbitration,[2] asset recovery and other legal finance and advisory activities.[3][4] It operates internationally with headquarters in Guernsey.
History
[edit]Burford was founded by Christopher Bogart and Jonathan Molot in 2009 as a way to fund commercial litigation and arbitration.[5] Bogart had worked as general counsel for Time Warner and operated a venture capital fund, and Molot operated a firm that provided capital to companies at risk of litigation. Burford began as a small fund that initially helped corporate legal departments pay their lawyers' billable hours during litigation.[6]
Burford became publicly traded on the London AIM Stock Exchange[7] in October 2009 and issued further shares in a follow-on in 2010. In December 2016, Burford purchased Gerchen Keller Capital, another legal finance company.[6] Burford launched The Equity Project in 2018. The project is used to finance commercial litigation and arbitration matters led by women and racially diverse individuals.[8]
In 2019, Burford responded to a short attack by Muddy Waters Research[9][10] that claimed financial inaccuracies.[11] The same year, the company replaced its chief financial officer, the spouse of the chief executive officer.[12] On 12 August 2019, Burford alleged it had identified evidence consistent with “illegal market manipulation” of its shares in the run up to the short attack.[13]
On 21 June 2021, Burford announced it had successfully been paid $103m USD, resulting from the enforcement of a judgment in the divorce suit between Farkhad Akhmedov, a Russian businessman and Tatiana Akhmedova.[14] Bloomberg reported the total settlement amount was £135m.[15] Burford Capital was successful in financing the enforcement of the judgment in the divorce litigation. [16][17] Burford went public on the New York Stock Exchange in 2020.[18]
Burford financed litigation surrounding the renationalization of YPF, where in 2023 $16.1 billion in damages was awarded against Argentina on behalf of two minority shareholders of YPF. Burford's share of the verdict was estimated at $6 billion, with Burford seeking shares in YPF as payment on the judgement.[19]
In 2023, Sysco assigned its claims to Burford in anti-trust lawsuits for price fixing. Sysco originally brought the suits against chicken, beef, pork and turkey suppliers. Burford had funded $140 million of the litigation beginning in 2019 and was later in a dispute with Sysco over settlements with the suppliers. It sued Burford, alleging Burford was interfering with the settlements. Sysco had previously assigned a substantial portion of the claims in breach of its agreement with Burford.[20][21]
References
[edit]- ^ "Q&A with litigation financier Chris Bogart". New York Business Journal. Retrieved 14 August 2015.
- ^ "Burford Capital Ltd (BUR:London Stock Exchange)". Bloomberg. Retrieved 14 August 2015.
- ^ "N+1 Singer Begins Coverage on Burford Capital Limited (BUR)". WKRB. Retrieved 14 August 2015.
- ^ "What Do You Get if You Cross a Lawyer With a Banker?". Bloomberg.com. 2018-06-11. Retrieved 2018-06-11.
- ^ Kinder, Tabby; Beioley, Kate (9 August 2019). "Behind Burford Capital: the litigation funder under siege". Financial Times. Retrieved 19 December 2019.
- ^ a b Dewey, Katrina. "HOW THE FINANCIERS OF BURFORD CAPITAL ARE TRANSFORMING THE BUSINESS OF LAW". Law Dragon.
- ^ "BUR BURFORD CAPITAL LIMITED ORD NPV". London Stock Exchange. Archived from the original on 2015-09-07. Retrieved 14 August 2015.
- ^ Merken, Sara. "Burford sets aside new $100 mln pool for women, minority lawyers". Reuters. Retrieved 4 June 2024.
- ^ "Burford Capital attacks short sellers as shares plunge 40 per cent". City A.M. 7 August 2019. Retrieved 7 August 2019.
- ^ Russell, Harriet; O'Dwyer, Michael (7 August 2019). "Short seller Muddy Waters attacks litigation funder Burford Capital". The Telegraph. Retrieved 7 August 2019.
- ^ "Clarity on Burford Capital is needed after Muddy Waters treatment". The Guardian. 7 August 2019. Retrieved 12 September 2019.
- ^ "Burford Capital ditches finance chief in response to activist pressure". City A.M. 15 August 2019. Retrieved 12 September 2019.
- ^ "Burford Capital alleges illegal market manipulation". The Times. 12 August 2019. Retrieved 12 September 2019.
- ^ "Legal financiers paid £75m for role in Russian billionaire divorce battle". The Independent. 2021-07-16. Retrieved 2022-05-17.
- ^ Browning, Jonathan. "Billionaire Ends Largest U.K. Divorce With $186 MillionDeal". Bloomberg Law.
- ^ Burford Capital Website. "Akhmedov Judgment Enforcement Resolution". Burford Capital. Retrieved 2022-05-17.
- ^ "Billionaire Ends Largest U.K. Divorce With $186 Million Deal". Bloomberg.com. 2021-07-16. Retrieved 2022-05-17.
- ^ Han, Yoonji. "Litigation finance is going mainstream. Here's how a US stock listing for top player Burford Capital could transform the landscape for investors placing bets on lawsuits". Business Insider.
- ^ Iglesia, Facundo. "Argentina: granting Burford's request for YPF shares would 'violate international law'". Buenos Aires Herald.
- ^ Scarcella, Mike. "Litigation funder Burford wins bid to take over Sysco chicken antitrust cases". Reuters.
- ^ Frankel, Alison. "Sysco cedes antitrust claims to litigation funder Burford as two sides drop cases". Reuters.