This article discusses the trend of litigation finance, where individuals and companies are turning to private companies to front the money for legal costs in expensive litigation. Despite having in-house counsel, even larger companies are selling off pieces of lawsuits to improve cash flow and reduce risk.
1. Between 2013 and 2014, how much did Burford Capital, a public company traded in Britain, make on lawsuit investments?
2. Is litigation finance a new concept or is there a historic element to the practice? Discuss.
3. Do you agree or disagree with critics that argue that litigation finance threatens the integrity of our legal systems? Explain.
Schwartz, M. (2015). Should You Be Allowed to Invest in a Lawsuit? The New York Times, Oct. 22 (Retrievable online at http://www.nytimes.com/2015/10/25/magazine/should-you-be-allowed-to-invest-in-a-lawsuit.html)