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Category: Litigation Funding

Wall Street Journal Says Court Rules Are Starting to Bring Litigation Funders Out from Under a ‘Veil of Secrecy’

Wall Street Journal Says Court Rules Are Starting to Bring Litigation Funders Out from Under a ‘Veil of Secrecy’

“Investors placing bets on commercial lawsuits have long operated under a veil of secrecy.  But as litigation funding in the U.S. has spread to more courthouses and transformed into a billion-dollar business, plaintiffs and their faceless financiers are confronting calls for more transparency.” So begins a news article, “Lawsuit Funding, Long Hidden In The Shadows, Faces Calls For More Sunlight“, that the Wall Street Journal published last week. The article points out that “the arm of the federal judiciary that…

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Report: Litigation Funding Company Contends NFL Concussion Settlement’s Assignment Ban Is Unclear

Report: Litigation Funding Company Contends NFL Concussion Settlement’s Assignment Ban Is Unclear

A Law.com report last week says that a litigation funding company – which has entered into purported litigation funding agreements with 42 ex-National Football League players – asserts that the order that prohibits assignment is unclear. In a March 13, 2018, story on Law.com (NFL Lit Funding Demands Details of Assignment Agreement Ban, available here) reporter Max Mitchell writes that a “Thrivest Specialty Funding filed a letter to U.S. District Judge Anita Brody of the Eastern District of Pennsylvania, asking…

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‘Bait-and-Switch’ Claim Over $1 Million Hole-In-One Contest Fails When Court Says Assignment of Claim Was Champerty

‘Bait-and-Switch’ Claim Over $1 Million Hole-In-One Contest Fails When Court Says Assignment of Claim Was Champerty

So, four friends playing golf in Las Vegas get to the seventh hole, where a resort employee tells them that, “for a $20 fee, a golfer could enter the ‘million-dollar hole-in-one challenge’ in which a golfer who hits a ball from the tee to the cup in one swing ‘would get . . . a million-dollar prize.” One friend, Aretakis, pays the $20 entry fee for all four in the four-some.  Another friend, Neary, offered to reimburse the first for…

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Court: Litigation Funder Cannot Re-Litigate Enforceability of Agreements

Court: Litigation Funder Cannot Re-Litigate Enforceability of Agreements

Because a litigation funding company lost on the issue of enforceability of its agreements in a previous legal action against an individual, the company is precluded from re-litigating the issue in a later lawsuit where the company attempted to enforce the same agreements against the individual’s attorney, That was the ruling in Prospect Funding Holdings, LLC v. Breen, Civ. No. 2:17-cv-3328-KM-MAH, 2018 U.S. Dist. LEXIS 19373 (D.N.J. Feb. 5, 2018),Plaintiff Prospect Funding Holdings, LLC (“Prospect”).  The “agreements have already been…

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News Report: Newest Litigation Funding Legislation Is ‘Toothless’, Says Rival Bill’s Sponsor

News Report: Newest Litigation Funding Legislation Is ‘Toothless’, Says Rival Bill’s Sponsor

Following several articles on litigation funding during the first week of the year, The New York Post has reported on competing legislative proposals offered by New York politicians aimed at regulating the industry. And one bill is “toothless”, says a sponsor of an earlier piece of legislation that would cap interest rates that litigation funders could charge, according to the Post. The Post’s article, Lawmakers Square Off Over Profitable Cottage Industry, is available here. Earlier related Secondary Insurance Market Blog…

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A ‘No-Call’ in the NFL Concussion Settlement Litigation? Litigation Funders May Think Twice About Ruling That’s Now Being Appealed

A ‘No-Call’ in the NFL Concussion Settlement Litigation? Litigation Funders May Think Twice About Ruling That’s Now Being Appealed

A litigation funding company has filed an appeal from the ruling last month by the judge overseeing the NFL concussion settlement – a ruling that invalidated litigation funding agreements with cognitively-impaired ex-players. And that ruling raises a question: did the judge make a no-call, like NFL refs sometimes do – that could have prevented the litigation funders from even attempting to recoup any monies paid to the players. That question gets explored in a LinkedIn article available here.  An article…

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Litigation Funding Business Is ‘Littered With Ethical And Philosophical Quagmires’ Says U.S. News & World Report Article

Litigation Funding Business Is ‘Littered With Ethical And Philosophical Quagmires’ Says U.S. News & World Report Article

A reporter for U.S. News and World Report this week took a look at the “lightly regulated” business of litigation financing, and came away with some interesting comments about the “perverse”business. In a January 22, 2018 article headlined “How Wall Street Invests in Justice”, investing reporter John Divine said that “Litigation financing is an incredibly innovative and interesting creation of high finance, but it’s littered with ethical and philosophical quagmires.” Among his other comments were the following: The “obscure field…

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More From The New York Post About Litigation Funding: News Stories About Scam, Political Contributions, Editorial

More From The New York Post About Litigation Funding: News Stories About Scam, Political Contributions, Editorial

In covering the litigation funding “cottage” industry, the New York Post this week did not only report on how “Litigation Funders ‘Make It Hard Not To Sue’ The City” (Secondary Insurance Market Blog post available here).  The Post also published two other news stories and an editorial on litigation funding. In one news article, the Post the reported that “Litigation-financing firm LawCash’s eagerness to expand its operations in Florida led the company to get scammed out of nearly $100,000 by a…

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New York Post: Litigation Funders ‘Make It Hard Not To Sue’ New York City

New York Post: Litigation Funders ‘Make It Hard Not To Sue’ New York City

“These companies make it hard not to sue the city.  A finance firm run by [television personality] Bethenny Frankel’s boyfriend is among a host of companies that cost taxpayers millions of dollars a year by encouraging questionable lawsuits against the Big Apple with the promise of quick cash advances.” That’s the start of a New York Post story about a litigation funding company that has backed many lawsuits against New York City. The Post quotes a law school professor as…

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Following NFL Concussion Court’s Ruling, Interesting Timing For Article about Whether Litigation Funding Has ‘Shed Its Stigma’

Following NFL Concussion Court’s Ruling, Interesting Timing For Article about Whether Litigation Funding Has ‘Shed Its Stigma’

Law360 has interesting timing this month. A few days after a court issues perhaps the highest profile ruling involving litigation financing – striking as void agreements with NFL players in a class action over concussion and cognitive impairments suffered during their professional football careers (see the Secondary Insurance Market Blog post here) –  Law360 asks “Has Litigation Financing Shed Its Stigma?” A link to the Law360 article (mostly behind pay wall) is here.