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Category: Litigation Funding

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.

Judge Overseeing Concussion Settlement Invalidates Litigation Funding Agreements with NFL Players

Judge Overseeing Concussion Settlement Invalidates Litigation Funding Agreements with NFL Players

A federal judge ruled last week that litigation funding agreements with National Football League players who are seeking to recover under the NFL’s concussion settlement agreement. In a sweeping ruling, U.S. District Court Judge Anita Broady held that the anti-assignment provision in the settlement agreement precluded the agreements where by the players sold their right to receive future settlement payments in order to receive more immediate sums from the litigation funders. The high-profile concussion settlement involves former NFL players who settled…

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Will NFL ‘Feeding Frenzy’ Lead to ‘Watershed’ Moment – and Greater Disclosure – for Litigation Funding?

Will NFL ‘Feeding Frenzy’ Lead to ‘Watershed’ Moment – and Greater Disclosure – for Litigation Funding?

The news in July was that litigation funding companies were engaging in a “feeding frenzy” of agreements with former National Football League players who could be among the nearly 5,000 NFL veterans entitled to a share of the $1 billion concussion claims settlement. The latest news reports two new twists: that the agreements are being challenged en masse, in ways that involve some unusual procedural means, and that a lead attorney in the concussion lawsuit – who has voiced criticisms of…

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Federal Court in Florida Says Putative Class Action Challenging Litigation Funding Practices Should Be In Illinois State Court

Federal Court in Florida Says Putative Class Action Challenging Litigation Funding Practices Should Be In Illinois State Court

A putative class action filed against a litigation funding company – claiming that the company violated usury, lending practices, and other laws – has been dismissed as filed in the wrong forum, although the plaintiff may seek to proceed in another jurisdiction. In Smith v. Oasis Legal Fin., LLC, Case No. 8:17-cv-2163-T-33JSS, 2017 U.S. Dist. LEXIS 180081 (M.D. Fla. Oct. 31, 2017), the court dismissed the case under the doctrine of forum non conveniens, adding that because the court decided “that the case…

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Finding Violation of New York’s Champerty Laws, Federal Court Dismisses Fair Debt Collection Practices Act Lawsuit

Finding Violation of New York’s Champerty Laws, Federal Court Dismisses Fair Debt Collection Practices Act Lawsuit

Agreements among a credit repair organization, a law firm, and a New York woman were unenforceable or otherwise ran afoul of the law, a federal court ruled this week.  The reasons?  The credit repair organizations agreement with the woman violated a federal statute, and an agreement with the law firm violated New York’s champerty laws and other rules, the court said. Judge Robert W. Sweet, of the U.S. District Court for the Southern District of New York, issued the July 17…

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New York Times: ‘High-Risk’ Viaticals May Have Contributed to Debt Problems for Virgin Islands

New York Times: ‘High-Risk’ Viaticals May Have Contributed to Debt Problems for Virgin Islands

The pension system for the Virgin Islands has been “chasing high returns by investing in high-risk assets, like a $50 million placement in life viaticals — an insurance play that is, in effect, a bet that a selected group of elderly people will die soon.” That is a line from an article with the headline After Puerto Rico’s Debt Crisis, Worries Shift To Virgin Islands, available here.