Archives: Litigation Financing

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U.K. Court Sends Cautionary Note to Fledgling Litigation Funders

A recent U.K. appellate court sends a strong cautionary note to litigation funders about the need for vigorous and independent pre-litigation due diligence and of the risks that can follow their support of an unmeritorious claim. In a November 2016 Judgment, the U.K. Court of Appeal ruled that the litigation funders that supported a claimant’s … Continue Reading

Guest Post: The 101 of Litigation Funding in the German D&O-Claims Arena

One of the most significant recent developments in the litigation environment has been the rise of third-party litigation funding. However, as I noted in a recent post, the impact of litigation funding has varied from jurisdiction to jurisdiction based on differences in the local law. In the following guest post, Burkhard Fassbach, a German attorney … Continue Reading

As Litigation Funding Rises Globally, Important Local Differences Affect its Impact

As I have previously noted on this site, the rise of third-party litigation funding is one of the most significant and potentially consequential development in the global litigation arena. But because of differences in countries’ legal systems, the escalation of litigation funding means and will mean different things in different jurisdictions. In an interesting November … Continue Reading

N.Y. Top Court Rules Litigation Finance Transaction Violates Champerty Doctrine

One of the important factors behind the recent rise of third-party litigation financing has been the view in many jurisdictions that litigation finance does not violate ancient prohibitions against “champerty” – that is, the investment by an uninvolved third-party in a lawsuit with the intent of sharing in any recovery. As I discussed in a … Continue Reading

Courts Throw Some Shade at Litigation Funding Arrangements

One of the most interesting and important recent litigation-related developments has been the rise of third-party litigation funding. An important part of this development has been the more or less general view that there is nothing improper about these kinds of arrangements and, in particular, that litigation funding does not represent improper champerty or maintenance, … Continue Reading

Guest Post: Litigation Finance: Stop The Hide-And-Seek Game

Litigation Funding is an increasingly important part of the current litigation scene, but it remains controversial. One of the important issues under debate is the question of whether or not litigation funding arrangements must be disclosed. In a recent discovery-related ruling (here), Northern District of California Judge Susan Illston confronted this question of whether or … Continue Reading

After the Hulk Hogan Lawsuit Funding Flap, Is it Time for a Look at Litigation Financing Regulation?

In recent years, one of the most important developments in litigation in the U.S. has been the rise of the litigation funding industry. Indeed, the industry’s rise has more recently been fueled by increasing investor interest, even as the industry itself has diversified into lawsuit portfolio investing (as opposed to individual-case investing). The industry’s rise … Continue Reading

Delaware Court Rejects Challenge to Litigation Funding Arrangement

Both inside and outside the United States, litigation financing has become an increasingly important part of the litigation environment. But litigation financing remains controversial, at least in certain quarters, and questions continue to be asked about whether or not it is proper or even appropriate. In a recent decision in a Delaware lawsuit between Charge … Continue Reading

Litigation Funding Firm to Close Its Doors

One of the most significant recent developments in the commercial litigation arena has been the recent rise of litigation funding. Though it remains controversial in some quarters, litigation funding is, in the words of a recent Above the Law post, “here to stay.” One reason that litigation funding is likely to remain an important factor … Continue Reading

The Next Step in Litigation Financing?

In recent years, litigation financing has become an increasingly important –albeit controversial – part of the litigation landscape. The ongoing evolution of litigation financing now appears to have taken a significant next step, in the form of a formal, public partnership between the litigation funding firm and a plaintiffs’ law firm. On October 28, 2015, … Continue Reading

Why Are Investors Seeking Litigation Funding Opportunities? Because Litigation Funding is Profitable

In a March 9, 2015 article entitled “Hedge Fund Manager’s Next Frontier: Lawsuits” (here), the Wall Street Journal described how the “next act” for EJF Capital LLC, a hedge fund run by Friedman, Billings, Ramsay Group’s former co-founder Emmanuel Friedman, will be to deploy a new litigation finance arm that has already, according to the … Continue Reading

Guest Post: Inside Litigation Financing

One of the most interesting and noteworthy litigation developments recently has been the rise of litigation finance in the United States. The nascent litigation finance industry has attracted a number of new entrants, and many of the latest entrants are attempting to establish their own particular niche. In the guest post below, my good friend Ommid … Continue Reading
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