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Category: Litigation Funding

Georgia Supreme Court Says Terms Of Litigation Funding Agreement Show That Arrangement Is Not Subject to Usury, Payday Lending Laws

Georgia Supreme Court Says Terms Of Litigation Funding Agreement Show That Arrangement Is Not Subject to Usury, Payday Lending Laws

The headline reads “Litigation funding not subject to Georgia’s interest rate laws, state Supreme Court rules.” And it is true that the Georgia Supreme Court ruled in favor of a litigation funding company, on the grounds that the state’s usury or payday loan laws did not apply. But the terms of the litigation funding agreements were the basis for the conclusion that the statutes were inapplicable, and had those terms been different – such as if the terms required repayment…

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By Allowing Litigation Funder to Recover From Ex-Player, Judge’s Ruling In NFL Concussion Litigation Both Raises Questions While Pointing To Possible Answer

By Allowing Litigation Funder to Recover From Ex-Player, Judge’s Ruling In NFL Concussion Litigation Both Raises Questions While Pointing To Possible Answer

As described here, the judge overseeing the $1 billion settlement of claims by ex-National Football League players against the NFL ordered attorneys for the ex-players to disclose information about prohibited litigation funding agreements. The same judge, Anita B. Brody, in December, 2017, had ruled that litigation funding agreements were violative of the court’s order approving the settlement. One litigation funding company appealed that ruling (see here). The December 2017 ruling did not go as far as it could have, in that…

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Court Reverses Course, Strikes State Attorney General’s Lawsuit Against Litigation Funder Over NFL, 9/11 Responder Transactions

Court Reverses Course, Strikes State Attorney General’s Lawsuit Against Litigation Funder Over NFL, 9/11 Responder Transactions

A federal court that previously ruled  that the structure of the Consumer Financial Protection Bureau is unconstitutional, while allowing the New York Attorney General to proceed with claims in the same lawsuit, now has reversed course, and dismissed the New York AG’s claims against a litigation funding company accused of scamming 9/11 responders and ex-professional football players. In a September 12 ruling, Judge Loretta Preska dismissed the New York Attorney General’s federal and state law claims against RD Legal Funding over…

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Commentary: Litigation Funders Are Fighting To ‘Stay In The Shadows’

Commentary: Litigation Funders Are Fighting To ‘Stay In The Shadows’

How much control do litigation funding companies have over the lawsuits they invest in? Litigation funders say ” ‘none,’ but the real answer is ‘we really don’t know.’” So writes Lisa A. Rickard, President of the U.S. Chamber of Commerce’s Institute for Legal Reform in a commentary that appeared yesterday in the New York Law Journal. In the piece, entitled Third-Party Litigation Funders Fight Hard To Stay In The Shadows, Rickard says that “the third-party litigation finance industry must be…

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Justice Department: Former Attorney Fraudulently Used Client Identities To Obtain Litigation Funding Advances

Justice Department: Former Attorney Fraudulently Used Client Identities To Obtain Litigation Funding Advances

A federal grand jury has indicted a former Georgia attorney for using client identifies to obtain litigation funding advances, according to the U.S. Department of Justice. The U.S. Attorney’s Office for the Northern District of Georgia announced yesterday that Chalmer “Chuck” Detling had been arraigned on multiple counts of wire fraud and identity theft, based on a federal grand jury indictment that alleged that Detling used the identities of 36 former clients without their authorization to obtain, and pocket for…

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Court: No Fraud By Owners In Financing Of Settlement Factoring Company Sale

Court: No Fraud By Owners In Financing Of Settlement Factoring Company Sale

A New York court last month issued an opinion in a long-running dispute over the financing of a sale of a structured settlement factoring company, dismissing the claims that the owners of the factoring company engaged in fraud to shield assets from the prospective purchaser. In describing the decision, one news report put it this way: “A New York state judge . . . threw out an investment company’s lawsuit accusing the majority owners of a structured-settlement buyout company of…

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Billionaire’s Investment Is ‘Latest Twist’ in Lawsuit Funding, Say Reports

Billionaire’s Investment Is ‘Latest Twist’ in Lawsuit Funding, Say Reports

News reports say that billionaire investor George Soros is getting involved in backing a litigation funding company – the “latest twist on the litigation funding market, which has drawn criticism for monetizing and encouraging the lawsuit culture in the U.S. The firm.” That’s the way one report described the development – see Soros Sees Mighty Big Gains In Investment Portfolios Made Out Of Lawsuits (available here). Other stories include the following: “How George Soros Is Making Money Off Personal Injury Financing,”…

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Court That Ruled CFPB Unconstitutional Also Concludes That Judge In NFL Concussion Litigation Was Correct To Invalidate Lawsuit Funding Deals

Court That Ruled CFPB Unconstitutional Also Concludes That Judge In NFL Concussion Litigation Was Correct To Invalidate Lawsuit Funding Deals

A federal court has concluded that the structure of the Consumer Financial Protection Bureau is unconstitutional.  In the ruling, described here and here,  the court dismissed the CFPB as a party but allowed the New York Attorney General to proceed with claims against a litigation funding company, RD Legal Funding (RD), for violations of federal and state law. One important issue that the court reached was whether the judge overseeing the NFL concussion litigation was correct in is view of…

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Court Describes Circuitous Route of NFL Concussion Litigation, Other Claims, to Recent CFPB Ruling

Court Describes Circuitous Route of NFL Concussion Litigation, Other Claims, to Recent CFPB Ruling

As described here, a federal court this month ruled that the structure of the Consumer Financial Protection Bureau is unconstitutional. The court nonetheless denied the motion to dismiss by litigation funding company RD Legal Funding, because it ruled that the New York Attorney General had authority to challenge the transactions between RD and personal injury victims, including ex-National Football League players. U.S. District Court judge Loretta Preska also described the circuitous route by which she was asked to address the…

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In Litigation Over Litigation Funding Matters, Court Rules that CFPB’s Structure Is Unconstitutional

In Litigation Over Litigation Funding Matters, Court Rules that CFPB’s Structure Is Unconstitutional

The structure of the Consumer Financial Protection Bureau is unconstitutional, and therefore claims of federal law violations against a litigation funding company fail. So ruled a U.S. District Court judge in a lawsuit brought by the CFPB and the New York Attorney General against a litigation funding company over, for one, the litigation funding company’s dealings with former National Football League players and, for another, the company’s transactions with individuals who suffered injuries as a result of the September 11,…

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