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Longford Moves to Compel Arbitration of Disputes Arising from Tax-Motivated “Two-Contract Structure”

January 21, 2024

Longford Capital Fund III, LP has moved to compel arbitration of the disputes raised in the District of Delaware complaint filed by Arigna Technology Limited this past December. The redacted version of Longford’s opening brief characterizes the “two-contract structure” of the funding arrangement between Arigna (a plaintiff operating under the umbrella of Dublin-based monetization firm Atlantic IP Services Limited), Longford (controlled by Longford Capital, a litigation finance firm based in Chicago, Illinois), and Susman Godfrey, LLP (litigation counsel for Arigna) as suggested by Arigna “for the stated purpose of best addressing the tax laws of Ireland”. Arigna and other Atlantic IP plaintiffs completed a “global settlement” with an unnamed defendant. Longford contends that Arigna violated that “two-contract structure” by failing to move all related “Proceeds”—including those received in connection with settlements with Arigna “Affiliates”—into a required escrow account controlled by Arigna, Longford, and Susman and by failing to submit any disputes to arbitration.


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