This post is drawn from the following article: Wendy Gerwick Couture, “Securities Regulation of Alternative Litigation Finance,” Securities Regulation Law Journal (forthcoming). To download the full article, please click here. In my prior post, titled “Are Litigation Finance Contracts Securities?”, … Continue reading
Richard Painter has given very useful guidance on the the interaction of securities laws and a possible litigation funding marketplace based on litigation proceed rights. Because of the breadth of topics covered, we decided it would be useful to tie it all … Continue reading
Q: If the only investors are specialized litigation finance firms, are there any issues regarding investment advisor status or suitability (for either the funder or the law firm)? If not, when if ever are such issues implicated? Does it matter … Continue reading
Q: The draft model contract currently heavily restricts the transfer of the litigation proceed rights; transferees have to join the Agreement, for example. What regulations are implicated if transfer restrictions are eased, to facilitate secondary markets in litigation proceed rights? … Continue reading
Q: If a law firm introduces a funder and a plaintiff who engage in litigation proceed rights financing, is the law firm a broker/dealer? If the answer is, “it depends”, what does it depend on? What bright lines can be … Continue reading
Q: Litigation Proceed Rights can be sold in a private placement, exempt from registration requirements under federal securities laws. What other securities or commodities laws might still apply? A: First, there are anti-fraud provisions in both federal and state securities … Continue reading
Last week I had the pleasure of attending a vibrant, comparative conference titled, simply, Commercial Litigation Funding Conference hosted by Windsor Law and organized by Prof. Jasminka Kalajdzic. One of the speakers, Ralph Sutton, the Chief Investment Officer of Bantham Capital (a subsidiary of … Continue reading
The plaintiffs’ duty to cooperate with their legal team undergirds the investment decision. At the time of the investment, the prospect of recovery is completely speculative, since no legally exercisable right yet exists to compel the defendant to make payment. … Continue reading
Although litigation finance parallels venture capital finance in many ways, one major marketplace difference is the (current) lack of reputation markets in the litigation finance world. Reputation is valuable for funders seeking to differentiate themselves in a marketplace that is … Continue reading
In an earlier post, we discussed the distinction between financing commercial litigation in order to provide access to justice versus funding as a tool of corporate finance. Today, we provide some examples of how funders are now marketing litigation funding in … Continue reading
