The Association of Litigation Funders (ALF) has received no complaints in relation to the high-profile dispute between Walter Merricks CBE and funder Innsworth Advisors over the settlement of the Mastercard collective proceedings, but is ‘monitoring’ developments, it said yesterday.

A statement by the ALF board said it had approached both parties involved but both had declined to engage further, citing the ‘confidentiality of their private arrangements’.

Merricks’ multi-billion pound Competition Act group claim against Mastercard settled last month for a reported £200m, far below the sum originally sought. Its funder Innsworth openly criticised the deal, which it is challenging in a settlement approval hearing in the Competition Appeal Tribunal on 6 and 7 February. In a public war of words, Merricks’ lawyer Boris Bronfentrinker of litigation firm Willkie Farr & Gallagher then accused the funder of seeking to ‘influence’ Merricks’ decision making.

The ALF said: ‘To the extent any funded client believes that a litigation funder has violated the ALF Code of Conduct (which, among other provisions, addresses the interaction between funder and client about settlement), ALF has a robust complaints process overseen by the ALF Board and managed by outside counsel. We have communicated about the situation with both parties and to date have received no complaint. Moreover, both parties have cited the confidentiality of their private arrangements in declining to engage further with ALF.’

Noting that ‘the parties are due to be heard in a settlement approval hearing’, the statement added: ‘While there is much speculation about the circumstances of this dispute, the ALF must wait until the facts are presented or a complaint is lodged before considering any action. We continue to monitor the situation.’

The ALF was established in 2011 as the body responsible for self-regulation of the litigation funding industry through a code of conduct for funder members, which was supported by the Civil Justice Council. Membership is voluntary and the association currently has 17 funder members, including Innsworth. Self-regulation of the funding industry is one of the topics currently being examined as part of the CJC’s review of litigation funding, due to report this summer.

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