There’s a little-known practice exploding around the world, turning lawsuits into investment opportunities.
It’s called third party litigation funding, and it allows outside funders to invest in lawsuits in exchange for a cut of any settlement or award.
This multi-billion Euro industry operates in secret. Financial investors can sign deals with claimants’ lawyers without necessarily disclosing them to anyone.
It’s often the case that no one, not even the judge or the company being sued, knows if a funder is involved or how much influence they have in the case.
Litigation funding also allows claimants’ lawyers to file more lawsuits, giving them big paydays while claimants receive little to no benefit.
Funders can get even more money from a lawsuit than the claimants who brought it – over 500 percent return on investment in some cases.
Third party litigation funding puts investors ahead of victims – and that’s not justice.
It’s time to pull back the curtain on this shadowy industry. It’s time for transparency and safeguards in litigation funding.