Background:

• Pass Herald Ltd. filed a class action lawsuit against Google and Meta Platforms (formerly Facebook), alleging anti-competitive practices in the digital advertising market.
• The lawsuit claims damages totaling $8 billion for breaches of the Competition Act, including conspiracy, bid-rigging, and misrepresentation.
• To finance the litigation, Pass Herald entered into a Litigation Funding Agreement (LFA) with Omni Bridgeway (Fund 5) Canada Investments Ltd., seeking court approval for the LFA.

Legal Issues:

1. Approval of the amended LFA based on its fairness, reasonableness, and contribution to access to justice.
2. Whether the LFA is champertous (improperly speculative) and whether it protects the interests of the class members and defendants.

Court’s Analysis and Decision:

• The court examined whether the LFA satisfied procedural and evidentiary requirements, contributed to access to justice, and was fair to all parties involved.
• The LFA was found not to be champertous, with a structured return on investment capped at $100 million, ensuring it was within reasonable and proportionate limits.
• The court approved the LFA but limited its approval to scenarios where the return to the funder did not exceed 10% of the total claim proceeds, reserving the right to reassess if returns exceeded this percentage.

Outcome:

• The LFA was approved with limitations, ensuring the funding arrangement was necessary for access to justice and not overly burdensome to class members.
• The court maintained the confidentiality of certain LFA terms, considering the commercial sensitivity and potential impact on litigation strategy.
• No amount specified for costs/.award.