The company bankrolling the massive lawsuit against Rightmove could be set for a bumper £100million payout.

The subsidiary of the hedge fund manager Elliott Management could be paid the sum if the £1.5bn legal action is successful.

The class action against Rightmove is being funded by Innsworth Advisors, Elliott’s UK-based litigation funding arm.

Litigation budgets

So far, 250 estate agents have supported the legal claim that they were abused by the property portal due to its dominant position and overcharged.

Andrew Leitch, a partner at Hogan Lovells, is reported in The Observer as suggesting the litigation funder budgets for similar cases “tend to be around the £20milion to £30million mark” and pay out at least “three times return plus your investment”.

Innsworth’s commitment in the Rightmove case is understood to be less than £45m, the total it paid from a previous eight-year action against Mastercard.

The multiple on investment is determined on a case-by-case basis by the Competition Appeal Tribunal (CAT) and can vary widely. In the Merricks vs Mastercard case, the agreed multiple was around eight times, although the CAT ultimately awarded far less.

Money pot

Innsworth is seeking to be paid from whatever pot of money Rightmove hands over, either at trial or in a settlement, should liability be established.

But Innsworth’s return, legal fees and costs will be taken out before estate agents see any money. It means that the bigger those deductions, the less will be paid out to estate agents.

Rightmove is one of the most profitable companies on the FTSE 100, and its own research says it has 80% share of time spent on property portals. Its share price dropped immediately after news of the claim, before regaining ground.

The Neg contacted Innsworth Advisors, which declined to comment.