Media & Publications
60 Minutes: Litigation Funding: A multibillion-dollar industry for investments in lawsuits with little oversight
Ever heard of litigation funding? It's a relatively new, multibillion-dollar industry where investors fund lawsuits. Here's the idea: say someone was wronged by a big corporation but has no money to sue it. A litigation funder will pay for their court battle. In essence: they're betting on the lawsuit the way traders bet on stocks. If it's successful – they make money, sometimes a lot of money; if it fails – the funders get nothing – their investment is lost.
The Partnership Mystique: Law Firm Finance and Governance for the 21st Century American Law Firm
This Article identifies and analyzes the de facto and de jure end of lawyers’ exclusivity over the practice of law in the United States. This development will have profound implications for the legal profession, the careers of individual lawyers, and the justice system as a whole.
Zombie Litigation: Claim Aggregation, Litigant Autonomy and Funders' Intermeddling
The main debate surrounding litigation funding in recent years has focused on the question of disclosure of funding agreements. While the issue is important, predominantly because of its effects on the course and outcome of individual cases, far more important are bigger, interrelated questions which have systemic effects on the civil justice system, the legal profession, and the nature of the rise of portfolio funding- which I here propose to view as a new form of undisclosed and unregulated claim aggregation- has broader-still effects including clients' potential, and at times actual, loss of autonomy over their cases as their lawyers become originators, brokers and/or managers of 'litigation assets.'
Financial Times on Chinese-funded lawsuit Challenges
The Financial Times (FT), a top global business publication, recently published a major piece examining the future of the multi-billion dollar litigation funding industry. The article focused on the challenges and criticisms facing the sector, including regulatory scrutiny and the complexities of capital management, especially as it relates to foreign investment in U.S. and international disputes.
You no longer have to be a lawyer to practice law in Arizona.
New rules allow nonlawyers to practice law and own law firms in Arizona. This welcomed revolution in access to justice will have profound effects on the justice system and legal profession.
And like all broad reforms, it has possible unintended consequences.
The new rules allow nonlawyers to invest in and manage Arizona law firms structured as “Alternative Business Structures” — business entities that provide legal services and include nonlawyers with economic interests or decision-making authority.
NPR: Capitalism In The Courtroom
Litigation financing allows third-party funders like Burford Capital to invest in other people's lawsuits, but it's long been considered unethical, and is illegal in many places.
But justice can often hinge more on how much money each side has than on what's actually right or wrong. So Burford argues that allowing investments in lawsuits will give more people access to better justice. And it's been a good business for them. But others worry it might warp the justice system.
NBC News: Peter Thiel/Gawker Case and the Ethics of Litigation Funding
The highly publicized lawsuit brought by Hulk Hogan against Gawker Media, which was secretly funded by venture capitalist Peter Thiel, thrust the world of third-party litigation funding into the national spotlight. The case amplified public concerns about transparency and the potential for wealthy interests to wield significant influence in the civil justice system.
WSJ: Litigation Financing Attracts New Set of Investors
The article, 'Litigation Financing Attracts New Set of Investors,' examined how hedge funds and other institutional investors are increasingly funding lawsuits in exchange for a portion of the recovery, a trend that is rapidly transforming the civil justice system.
As a leading expert in the field, Maya Steinitz was featured for her commentary on the ethical and regulatory challenges posed by the industry's growth.