A litigation financier’s involvement in the battle over the late Saudi businessman Osama Ismail Abudawood’s multibillion-dollar estate serves as a cautionary tale for those investing in family disputes. UK-based Therium Capital, seeing an opportunity for a sizeable return, funded Abudawood’s wife and daughter in their legal battle against his brothers over the family estate. This litigation spanned three countries and involved at least 18 lawsuits.
Therium is known for taking on unique cases, such as a lawsuit against Malaysia initiated by the descendants of a sultan. Their involvement in the Abudawood estate case is one of the few examples where funders wade into family disputes—traditionally seen as unpredictable and fraught with personal emotions.
The estate dispute initially revolved around Abudawood’s wife, Eleanor de Leon, and daughter, Alaa Abudawood, fighting for a larger share of the family’s multibillion-dollar estate, which included a conglomerate distributing products from multinational companies like Procter & Gamble and Clorox in the Middle East. They alleged that they were being shortchanged under Sharia law and that Abudawood’s brothers were diluting the company’s value. Ultimately, a California court ordered a global settlement of $88 million, a significant reduction from what they claimed was initially due.
Funders typically stay away from estate cases due to their inherent complexity and the potential for family members to act irrationally, driven by emotions and grief. Reid K. Weisbord, a professor of trusts and estates at Rutgers School of Law, noted that the non-economic factors often driving these disputes make them costly and less attractive for litigation funders.
Robert Martorana, a litigation finance broker, echoed this sentiment, stating that funders usually avoid situations where parties could act unreasonably, highlighting the additional layer of complexity that Therium’s involvement added to the Abudawood case. He speculated on whether the delays in the case were motivated by de Leon and Alaa’s reluctance to pay Therium its due share.
Overall, Therium’s experience with the Abudawood estate underscores the potential hazards and unpredictability of funding family feuds. Legal professionals and litigation financiers may find wisdom in carefully evaluating the emotional and personal intricacies involved before committing to such investments. More details on the case can be found here.