Category Archives: Regulatory Issues
Law Finance Group and GLS Capital Revealed to be Funding Patent Infringement Lawsuit
The issue of disclosure is once again front and center in a patent litigation suit. In the US District Court for the District of New Jersey, the identities of the funders of an infringement suit against a Merck & Co. company were revealed….
Nevada Senate Committee Debates Litigation Funding Disclosure Bill
Critics of the litigation funding industry have intensified efforts to lobby the federal government to more heavily regulate the practice in recent months, buoyed by examples of courts mandating increased disclosure of third-party funding. These efforts have also found an audience in state legislatures, with the Nevada Senate Judiciary Committee scrutinizing a bill that proposes…
ESG Alert: Funders Pursuing Vast Opportunities in Climate Litigation
Many industry observers, surveys and reports have found that ESG litigation and particularly climate litigation will continue to grow as a dominant force in the legal landscape, and there will undoubtedly be a major role for litigation funders to play. A recent article provides an overview of the current state of third-party funding of climate…
Lake Whillans Analyzes Potential Impact of GAO Report
In December of last year, the GAO published its report on third-party litigation finance, detailing the current trends and characteristics of the industry in the U.S. The report aimed to provide a much-needed resource of publicly available data on the market, and examine the potential policy implications of its result, which has led to industry…
Hybrid Patent Database / Law Firm Approved Under Arizona’s ABS Rules
As LFJ recently reported, despite the gradual relaxation of rules around Alternative Business Structures (ABS) for law firm ownerships in some states, we have yet to see a wider adoption of the practice across the U.S. However, one investment company is already taking advantage of the new rules in Arizona to form a business that…
An Argument for Scrutiny and Vetting of Mass Tort Litigation
The development of technology and media channels the support law firms connecting with potential plaintiffs has made it easier than ever to launch mass torts. In combination with the growing availability of litigation funding, this has created an environment that one industry commentator fears is encouraging ‘questionable claims’ and burying defendant companies under massive settlements….
Immunity from Lawyer Malpractice – Uniquely Australian
The following article was contributed by Valerie Blacker, a commercial litigator focusing on funded litigation, and John Speer, a lawyer in the Dispute Resolution and Litigation Team at Piper Alderman.
While large class actions receive the lion’s share of media attention, litigation financiers also regularly fund litigation involving a single plaintiff. Given that solicitors are required to maintain professional indemnity insurance, they can be, in instances of negligence, an attractive prospect for financiers: they are well-resourced and have the capacity to satisfy any judgment awarded against them.
DAF Appeal in UK Supreme Court Could Endanger Third-Party Funding
As the European Union considers proposals for enhanced regulation and oversight of third-party litigation funding on the continent, there has been much speculation that the UK’s litigation finance industry could benefit from representing a more welcoming market. However, an ongoing appeal by the defendant in two group claims has the potential to disrupt the status…
Partner Resistance and Regulatory Uncertainty Remain Hurdles for Adoption of Alternative Business Structures
In recent years, we have experienced the relaxation of rules governing ownership of law firms in a small number of states, beginning with Utah in 2020 and Arizona in 2021. However, despite these developments, there has yet to be a wider adoption of Alternative Business Structures (ABS), with industry commentators suggesting that resistance to change…
UK Litigation Funding Market Could See Growth if EU Imposes Restrictions
The shadow of the Voss Report’s recommendations looms over the future of litigation funding in Europe, as firms evaluate where the best opportunities will be in 2023. As some in the industry fear that overly zealous regulation of the practice could seriously hamper funder activity in the European Union, there is growing speculation that the…
