Litigation funder and top City lawyer clash over £200 million Mastercard settlement

War of words over mega legal case

A litigation funder and a top City law firm partner involved in a landmark Mastercard collective action have publicly traded criticism over a proposed £200 million settlement.

The dramatic fallout emerged in the landmark action against Mastercard, as solicitor Boris Bronfentrinker and litigation funder Innsworth Advisors locked horns over a proposed settlement earlier this week.

The case, led by consumer champion Walter Merricks, focuses on card fees charged to Mastercard customers and represents a groundbreaking test of the UK’s collective action regime. According to reports, the claim was most recently valued at around £10 billion.

At the heart of the dispute is the reported £200 million settlement, which Bronfentrinker, a partner in the London office of US firm Willkie Farr & Gallagher, has hailed as a “very good outcome for UK consumers”.

However, Innsworth Advisors, which advises litigation funder Innsworth Capital, has criticised the deal as “too low and premature,” accusing Bronfentrinker and Merricks of seemingly rushing to settle despite previously claiming the case was worth much (much!) more.

A spokesperson for Innsworth Advisors told Legal Cheek:

“We strongly oppose this reported settlement which was struck without our agreement. It is both too low and premature. Both Walters Merricks and Boris Bronfintrenker have repeatedly claimed this is a billion pound case, yet they seemed to have rushed to settle for a reported £200 million raising some serious questions. We will be challenging this agreement and have already written to the CAT. We will have more to say in the coming days.”

Hitting back at the criticism, Willkie partner Bronfentrinker claimed to Legal Futures that Innsworth’s reaction was driven by “funder greed” and that “its desire that Mr Merricks continue with risky litigation” could lead to clients “recovering significantly less, or even nothing”.

“The decision to oppose the settlement and to go public with that, attacking Mr Merricks, is the latest in a sustained campaign it has engaged in to inappropriately pressure and seek to influence Mr Merricks’ decision making in order to take control of the litigation,” Bronfentrinker reportedly said.

“It is good that this has all come to light and will be considered by the tribunal when it comes to assess the settlement that has been agreed with Mastercard,” the top lawyer added.

The legal drama comes at the tail end of nearly nine years of litigation. The case, which alleged Mastercard imposed unfairly high fees on millions of UK cardholders, has been one of the largest class actions in British history. Initially seeking £10 billion in damages, the case set significant legal precedent after the Supreme Court ruled in 2020 that it could proceed.

The settlement now requires approval from the CAT, but this process may be delayed due to Innsworth’s objection.

Bronfentrinker and Willkie were approached for comment.