Secondary Insurance Market Blog

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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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 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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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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“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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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.