Validity Finance

Validity Finance Blogs

Blog Authors

Latest from Validity Finance

“What do you need to quickly evaluate my case and reach a funding decision?” We get this question a lot. This blog post answers it. If you’d like to present your case to a funder, here’s our checklist of what information we need to begin your case evaluation. At the end, we’ll also give some tips on how to package and present the materials. What’s in the funding request? To invest in a case, funders…
Reposted with permission from Columbia Law School. By Here’s a familiar story for litigators. A client calls you with a strong legal claim, but she can’t afford to pay your hourly rates. And your firm won’t let you take the case on contingency. You feel hard-pressed to tell your client to look elsewhere. Enter litigation finance: the practice where a third party provides capital to a litigant or law…
Ralph Sutton, CEO of Validity Finance, predicts the five top litigation funding trends for the new year. He looks at the impact of Covid-19 on trials and arbitration, and says pricing will remain stable, but clients and firms will be able to secure deals that were not conceivable five years ago. ORIGINALLY PUBLISHED on Bloomberg Law https://news.bloomberglaw.com/us-law-week/five-litigation-funding-predictions-for-2021 This coming year will be filled with milestones following a tumultuous election season and tragic loss of life…
Last month, Judge Bencivengo of the Southern District of California, joined an ever-growing list of federal judges around the country finding materials prepared by, for and with litigation funding entities fit squarely under the umbrella of attorney work product protection and thus cannot be disclosed to an adversary during litigation. Impact Engine, Inc. v. Google LLC, Case No. 3:19-cv-01301, Dkt. No. 129 (S. D. Cal. Jul. 17, 2019). At its core, the work product protection…
Most law firm pitches are heavy on the lawyers’ experiences and record, but leave out a really crucial part of the litigation: its resolution. This article will concern using analytics on litigation resolutions to pick the right counsel and to demonstrate a legal department’s value as a profit-generating department, not just a cost center. By Joshua Libling It’s time for some math. Modeling math! No, don’t stop reading! Most law firm pitches are heavy on…
Lawyers and clients alike will benefit from the State Bar committee’s guidance on how to safely navigate the ethical rules while preserving litigants’ access to the courts. Originally Printed in The Recorder October 21, 2020 https://www.law.com/therecorder/2020/10/21/california-bar-simplifies-lawyers-obligations-to-clients-in-funded-matters/ The State Bar of California is the latest to weigh in on the ethical issues that arise for lawyers when a client seeks third-party funding. Formal Opinion No. 2020-204 reflects the relatively well-established use of litigation funding in the…
We’ve previously written about the two “bread and butter” litigation finance products: single-case financing and portfolio funding. Which one is right for you? Lots of times, single-case funding is the way to go. But other times, a law firm comes to us seeking single-case funding for one client but ends up entering into a law firm portfolio deal instead. Here are four reasons why requests for single-case funding sometimes morph into portfolio deals: 1.…
Article originally printed in Texas Lawyer, September 16, 2020 In early June, we looked at the impact of COVID-19 and collapsed oil prices on Texas businesses. At that time, forecasts indicated continued losses in the energy, health care, legal and other sectors, more layoffs, and an uptick in commercial litigation inside and outside of the bankruptcy courts. As we close out the third quarter and the economy cautiously reopens, many of these predictions have…
By William C. Marra, Investment Manager When asked how he went bankrupt, one of Ernest Hemingway’s memorable characters in “The Sun Also Rises” replied, “Gradually, then suddenly.” The same may soon be said for how the business of law got transformed. Last week, after years of mounting calls for reform, the Arizona Supreme Court abolished Rule 5.4 of the Arizona Rules of Professional Conduct, which prohibits lawyers from sharing fees with nonlawyers. Rule 5.4 is…
When reading fiction, some of us love a mystery.  But when evaluating financial service offerings, probably not so much. One thing may feel mysterious to lawyers and companies seeking funding: How do funders select the cases they invest in? To many, the process may seem high on subjectivity and low on transparency and if prospective litigation finance clients don’t understand how funders make decisions, they may struggle to present their case in the best light…