Alberta separatist leader Rath faces $109M debt claim from US investors
Alberta separatist leader Jeffrey Rath and his law firm are facing a $109 million debt claim from a U.S. litigation funder. This follows separate legal actions from former clients regarding disputed trust funds.
Why it matters
The case highlights the financial risks and controversies associated with the litigation funding industry in legal practice.
An American litigation funder is threatening to call in more than $100 million in alleged debt from Alberta separatist leader and lawyer Jeffrey Rath and his firm, Global News has learned.
Delaware-based Diriba Investments LLC alleges in court documents that Rath and his professional corporation, RathPC, defaulted two years ago on a financing agreement tied to First Nations and COVID-19 litigation cases — a debt the lender now says totals nearly $109 million, plus interest and costs.
Rath and his corporation now face pressure on two fronts. As Global News reported last month , two former First Nations clients have filed separate court actions seeking the return of tens of millions in disputed trust funds, and now an American creditor is pursuing a nine-figure claim against the firm’s legal proceeds and other assets.
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