EDMONTON — Alberta independence advocate and legal counsel Jeffrey Rath and his firm face new financial challenges, including a $109 million debt claim filed by a US group that invests in litigation efforts. First reported by Global News on Tuesday, Delaware-based litigation funder Diriba Investments LLC claims Rath and his firm, RathPC, defaulted on an agreement in 2024 centred on cases involving First Nations and COVID-19 litigation. .Litigation financing allows investors to cover litigation costs in exchange for a share of fees and compensation if the case is won. Rath's firm and Diriba reportedly entered into an initial agreement in 2018. Diriba claims Rath’s firm broke the deal by failing to make required payments, submit monthly reports, inform them of material developments or proceeds from associated cases and respond to requests. The investors allege the debt now amounts to $108.8 million.Rath denies breaching the agreement, and claims the litigation was premature because fees for the applicable cases are still outstanding. "All of the cases that are at issue remain outstanding," said Rath to the Western Standard on Tuesday. "So the litigate the the litigation is premature, and the allegation of $109 million debt is ridiculous." .Rath and his firm faced two other legal challenges in recent months, as a pair of First Nations have accused him of misappropriating over $21 million while overseeing trusts stemming from settlements with the federal government. He also denied the allegations, claiming the funds were legally paid to him under the terms of the settlement trust agreements. Alberta courts issued a pair of freezing orders against Rath and his firm in July and August, with one totalling $8.5 million of assets and the other being an undisclosed amount. "The Settlement Trust expressly provided for the payment of legal expenses, settlement and administrative fees and expenses," wrote Rath in a statement from July. "Jeffrey Rath maintains was done in accordance with the terms of the trust."Rath is a prominent leader within the Alberta independence movement and has represented the Alberta Prosperity Project, Stay Free Alberta and the citizen initiative petition's proponent Mitch Sylvestre in multiple legal cases.
