Archetype Capital Partners, a litigation funding firm based in the United States, has initiated a lawsuit against its former co-founder, Andrew Schneider, and the Georgia-based law firm Bullock Legal Group. The suit, filed in the U.S. District Court for the District of Nevada, alleges that Schneider and Bullock Legal conspired to misappropriate trade secrets and confidential client information, resulting in significant financial losses for Archetype.
According to the complaint, Schneider and Bullock Legal utilized proprietary data and business models developed by Archetype to establish a competing venture, particularly targeting litigation involving video game addiction claims. This alleged misuse of confidential information, which was protected under a nondisclosure agreement, is said to have provided them with an unfair advantage in the mass tort market. Archetype is seeking damages exceeding $100 million for lost profits and business opportunities.
Archetype, founded in 2020, specializes in funding mass tort litigation, offering innovative financing solutions for law firms. Schneider was a member of the company until early 2025. The lawsuit highlights the alleged unauthorized use of marketing and underwriting strategies, which Archetype claims resulted in significant lost revenue and business opportunities. The case is being heard in the U.S. District Court for the District of Nevada, under case number 2:25-cv-01686. The defendants have not yet made a court appearance or issued a public response.
This case underscores the critical importance of safeguarding proprietary information within the litigation finance industry. As firms develop unique strategies and data models to assess and fund legal cases, the protection of such intellectual property becomes paramount. The outcome of this lawsuit may set a precedent for how trade secrets are protected and litigated in the context of litigation funding.
Similar cases in the industry highlight the ongoing challenges related to trade secret protection. For instance, in 2022, Hedgeye Risk Management filed a lawsuit against Solstein Capital and its founder, alleging the theft of proprietary research to establish a competing business. Such incidents emphasize the necessity for robust confidentiality agreements and vigilant enforcement to protect intellectual property in the competitive landscape of litigation finance.