From labor disputes cases to labor and employment publications, for your research, you’ll find solutions on Bloomberg Law®. Protect your clients by developing strategies based on Litigation...
A federal whistle-blower lawsuit filed May 16 against Snap Inc. by a former employee is being financed by Pravati Capital in what may be the first case where the role of a litigation funding company is acknowledged publicly.
“I think we’re the first publicly announced portfolio litigation funding deal,” John Pierce, a Los Angeles lawyer who represents whistleblower Anthony Pompliano, told Bloomberg BNA May 16. The deal with Pravati Capital involves the entire portfolio of contingency fee cases that Pierce’s firm, Pierce Sergenian, is handling, he said. “That allows an elite start-up firm like us to grow more rapidly than we otherwise would to take on larger cases than we otherwise would,” Pierce said.
In litigation finance, a company provides money to fund a lawsuit in exchange for a percentage of the recovery the litigant receives if he wins the case. Most litigation funding deals occur quietly, Pierce said, but he wants the opposing side to know he has deep resources to take his cases “to the finish line.”
Anthony Pompliano, who led the user growth and engagement team at Snapchat for three weeks, claims the social media company fired him when he refused to help company executives misrepresent the size of its user base. Pompliano alleges the company hurt his chances for future employment by smearing his reputation while trying to debunk his allegations as it prepared for Snap Inc.’s recent initial public stock offering.
Pompliano alleges Snap Inc. hired him away from his previous job at Facebook to pump him for confidential information about Facebook’s operations, even though it knew he was bound by confidentiality and non-solicitation agreements he signed with Facebook.
The ousted employee is seeking a minimum of $10 million in compensatory damages as well as punitive damages and an injunction ordering Snap Inc. to stop maligning his reputation.
Under the deal between Pravati and Pierce Sergenian, the law firm is receiving funding from Pravati “in slices, as we need it,” and Pravati “will get paid from the proceeds from our contingency,” Pierce said. “The funding can be used for all purposes,” whether for expenses directly related to a case or for general office expenses, he said.
Pravati CEO Alex Chucri did not return messages left by Bloomberg BNA May 15. In a May 2 statement, he said, “We expect the return on investment will be very strong.”
Snap Inc. did not respond to a message left by Bloomberg BNA May 15.
Baldwin Lee, a lawyer at Allen Matkins in San Francisco who represents Snap Inc., declined to comment May 15.
To contact the reporter on this story: Gayle Cinquegrani in Washington at firstname.lastname@example.org
To contact the editors responsible for this story: Tony Harris in Washington at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)