Lawsuits May be the Only Valuable Possession of Newly Released Prisoners

Chicago has been called the ‘wrongful conviction capital’ for its policing tactics that allegedly lead to bullying defendants into false confessions, or withholding evidence that would clear a wrongly convicted individual. Being released from prison after a wrongful conviction is obviously better than the alternative, but the newly released prisoner must then contend with starting life over from scratch.

Bloomberg Law explains that the only asset someone in this position might have is a lawsuit. Enter litigation funding. A newly popularized focus on ESG investments (those involving environmental, social justice, and government-focused issues) is leading to greater availability of funding for recent exonerees. While the funding is provided on a non-recourse basis, if a case is successful, as much as three times the funded amount may be owed back to the funders.

Compensation for time spent in prison for wrongful convictions can happen in two ways. In most states, verifying innocence will earn compensation. Alternatively, if it can be proven that a wrongful conviction occurred due to police misconduct, a civil lawsuit can be very lucrative.

The recently exonerated may be reticent to accept third-party funding, even non-recourse funding, due to what is viewed as the excessive fees and percentages that return to funders when cases are successful. Funders in turn assert that fees are commensurate with the financial risk they assume—which is 100%. At the same time, these newly released prisoners may find themselves in such dire financial straits that they have little choice but to accept funding. Even under the best of circumstances, successful outcomes can take years to realize.

The good news is that many funders do see that there are moral, ethical, and financial motives to offer help to exonerees. This is the essence of increasing access to justice, which is what Litigation Finance does best.

Chicago has been called the ‘wrongful conviction capital’ for its policing tactics that allegedly lead to bullying defendants into false confessions, or withholding evidence that would clear a wrongly convicted individual. Being released from prison after a wrongful conviction is obviously better than the alternative, but the newly released prisoner must then contend with starting life over from scratch.

Bloomberg Law explains that the only asset someone in this position might have is a lawsuit. Enter litigation funding. A newly popularized focus on ESG investments (those involving environmental, social justice, and government-focused issues) is leading to greater availability of funding for recent exonerees. While the funding is provided on a non-recourse basis, if a case is successful, as much as three times the funded amount may be owed back to the funders.

Compensation for time spent in prison for wrongful convictions can happen in two ways. In most states, verifying innocence will earn compensation. Alternatively, if it can be proven that a wrongful conviction occurred due to police misconduct, a civil lawsuit can be very lucrative.

The recently exonerated may be reticent to accept third-party funding, even non-recourse funding, due to what is viewed as the excessive fees and percentages that return to funders when cases are successful. Funders in turn assert that fees are commensurate with the financial risk they assume—which is 100%. At the same time, these newly released prisoners may find themselves in such dire financial straits that they have little choice but to accept funding. Even under the best of circumstances, successful outcomes can take years to realize.

The good news is that many funders do see that there are moral, ethical, and financial motives to offer help to exonerees. This is the essence of increasing access to justice, which is what Litigation Finance does best.