Litigation funder sues co-founder, law firm for $100 million over trade secrets

By Mike Scarcella

Sept 10 (Reuters) - U.S. litigation funder Archetype Capital Partners has sued one of its co-founders and a law firm, accusing them of stealing client information and other internal business secrets.

The lawsuit, filed on Monday in federal court in Nevada, said Archetype co-founder Andrew Schneider and Georgia-based law firm Bullock Legal used the company's trade secrets and confidential information to secure investment funding for cases, particularly a growing wave of video game addiction litigation.

The lawsuit said Nevada-based Archetype is seeking more than $100 million in damages for lost profits, in addition to lost marketing and lead generation revenue.

Bullock Legal and a lawyer for Archetype had no immediate comment.

Schneider on Wednesday called Archetype's allegations "patently false" and "offensive," and said he would fight back against the company's claims.

"When this is done, I will be vindicated," he said.

Litigation funders provide financial support to clients in exchange for a part of any settlement or judgment.

Archetype said it was founded in 2020 “with the vision of developing innovative litigation finance solutions for law firms.” Schneider was a member of the company until early 2025, according to the complaint.

The company said it developed its own models for underwriting and reviewing litigation, claims and lending for mass tort cases, including lawsuits claiming video game companies intentionally created addictive products and caused harm to players.

Bullock Legal did business with Archetype, the lawsuit said. Bullock advertises its nationwide work on behalf of families and individuals suing video game makers.

The two businesses had a nondisclosure agreement allowing them to share confidential information to evaluate investment opportunities, the lawsuit said.

Last year, according to the lawsuit, Schneider formed a joint venture relationship with Bullock in which they “cultivated and created significant business relationships and opportunities using the stolen property, trade secrets, and confidential information to steal business opportunities.”

The case is Archetype Capital Partners LLC v. Bullock Legal Group LLC and Andrew Schneider, U.S. District Court for the District of Nevada, No. 2:25-cv-01686.

For plaintiff: Kevin Anderson of Fabian VanCott

For defendants: No appearances yet

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