Hello, my name is Matthew Bransgroves. This is Part 10 of Ralan Ponzi Scheme.
Today we are going to talk about the class actions and litigation funding.
You cannot have one without the other. A class action is when seven or more people want to sue the same company for the wrong. It is a great way to save money.
These proceedings have been estimated to cost approximately 5 million dollars. That would not make sense for any individual victim. But if everybody joined together in a class action that would make a lot of sense.
Even so, experience shows that when people lose money on something like the Ralan disaster, they are not interested in paying one cent in legal fees. That’s where a litigation funder comes in.
If the litigation funder thinks the case is winner then it will provide the money necessary to pay the lawyers to bring the case to the court. In return, the litigation funder gets 30% – 40% of what you win. It is a good deal for everybody.
I have seen a lot of people on WeChat say we should not use Matthew Bransgrove. Maybe he does not know what he is doing.
I am not sure I will be running this class action. What happens with a class action is if the evidence is good, lots of people want to run it. If the evidence is bad, noone wants to run it.
I am hoping your evidence is good. If your evidence is good, litigation funders and class action lawyers will be competing for your business. That’s a good thing.
When this matter goes to court, the Judge will often allow 3, 4, or 5 cases to continue. Each one representing a different group of investors. But eventually the Judge says, Enough, we need to combine these cases together.
There are two ways of doing this. First, the judge can order all the cases to be consolidated together so that the different lawyers go to the same court, each one presents his own evidence.
There is anther way it can happen. The Judge can order that all of the cases except for one get stopped. Then everybody would be represented by the one action proceeds.
Now, you may hear about the expression “opting-in” and “opting-out” in class action.
That’s to do with an open class action. Australian has an “opt-out” process. That means if you do not agree to join it is does not matter you are still being joined. This means no matter how many funders and separate actions there are you will not miss out.
The only way you can miss out is to put your hand up and say I do not want to be in this action. That’s called opting out.
The “opt-out” stage comes very late. By then, all the different actions have been made into one.
From a practical point of view, no one opts out. If you opt out, you would not get your money. And everybody else will get their money. If you are a man. Your wife will never let you forget your mistake.
So don’t worry about opt-out. The key issue is whether or not you sign up with a particular litigation funder. It is possible that one funder will offer you 70% what you won. Another one will let you keep 80%. You will want to choose the one that lets you keep the most.
However this is all in the future. To make a decision between funders you have to wait until there are at least two funders offering. At the moment, there are exactly zero funders offering.
What I want to do is to put together evidence to get the litigation funders are interested.
I am in talks with one of them. He has agreed to pay some of my costs. However he has not agreed to take the case.
I once worked with him before. I said to him this case is a winner.
That was what I said for the last case we run together. I was right.
However at this stage he cannot see the case because I don’t have the evidence that I need.
So to all of you out there, I want you to understand that at this point there is nothing I am doing that is going to hurt your chances. Everything I am doing will help your chances.
Let’s image you do not like me. You should still support what I am doing because I am the only person that is trying to put this case together.
Once I have formulated the case, and it is a good one, litigation funders will come from everywhere.
And that is when you may decide bye bye Matthew. That is ok. I am going to be little upset. My pillow will be very wet, but it is dose not matter.
Here is why I am doing this. This is not an easy case. It is not a case where litigation funders immediately say it is easy money. Last year, there was a class action started involving AMP. 5 lawyers and 5 litigation funders started proceedings.
They were all so excited by the easy case. None of them are here now. That is because this is not an easy case.
This is a strange case.
I happen to know all of about debentures. This is because two of my clients run debenture funds.
I happen to know all about the Corporations Law. That is because I was involved in very long running litigation involving City Pacific which involved Corporations Law.
I happen to know all about all about corporate collapses which cost lots of investors lots of money. That is because my involvement of City Pacific.
I happen to know all about Construction Law. This is because this is the area I practice in.
I happen to know all about false pre-sales. There a chapter in my book about it.
I happen to know a lot about Ralan, because I have been following the company for many years.
All these things coming together make me realise something. I am the only person who can see the case.
When I heard Ralan had gone into administration I shook my head and sipped my coffee. I did not think I would be involved.
I did not want to be involved. It is not my business. I mainly do private mortgages. That means I act for people who loan money out to other people privately.
I do not do class actions. However there was a problem, after several days of newspaper reports, I noticed that no one in the media had said anything about it being an illegal debenture scheme.
The Gold Coast Bulletin and the Australian Financial Review, which are newspapers, both ran the articles about whether or not it was illegal to release the deposits under state law.
I said to myself I am the only person who can see this is the Federal Corporations Act that has been broken. Apparently I was.
So I wrote to the Financial Review and I told them. They wrote an article. There was a little bit activity as a result.
Two or three lawyers firms set up web-forms on their website and started taking names for a class action. I met some of them. They did not have a clue.
That’s when I realised that if the Ralan victims are going to get their money back I have to do it. Otherwise it will not happen.
We are talking about $292 million dollars. It seems to me that the Ralan victims, because they are Chinese, might miss out.
So I am taking these steps to make sure that does not happen.
Some people on WeChat have said that they worry about trusting me. My wife used to feel that way.
However I am very steady fellow. I have been doing what I do for 20 years and will do it for another 20 years.
I am making lots of money doing what I am doing. Ralan is not part of my money making plans. If I do this class action, it is probably because no one else will do it.
If I get the evidence, and I package it correctly, then other people take over from me, I would be happy with that.
Anyone who has concerns about what I am doing should asks questions in public on our WeChat account. I will answer them.
It is my sincere hope that by the time I finish there are lots of litigation funders and lots of lawyers. That would result in the best deal for you. Until then we will stuck with each other.
I hope I have explained enough about the class actions and litigation funding for the moment. I am not asking anyone to make any decisions concerning litigation funding and class actions.
When we get to the point it will be months from now. Then we will visit the subject again.
What I tell you then will depend on where we find out ourselves. We may alone with just one litigation funder, or you may have a lot of choices. We can worry about that then.