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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…
By Wendie Childress and Amber Stewart Litigation finance aims to promote equity in our judicial system and provide access to the courts, regardless of any financial disparity between litigants. Attorneys and clients in the U.S. are turning more and more to funding to obtain the financial resources to bring meritorious claims to trial, which is especially important in the current economic climate. On August 3, 2020 for the first time since 2012, the ABA published…
By Wendie Childress and Amber Stewart Litigation finance aims to promote equity in our judicial system and provide access to the courts, regardless of any financial disparity between litigants. Attorneys and clients in the U.S. are turning more and more to funding to obtain the financial resources to bring meritorious claims to trial, which is especially important in the current economic climate. On August 3, 2020 for the first time since 2012, the ABA published…
Hedge fund Elliott Management’s funding of a lawsuit by video startup Eko against rival Quibi entailed a grant of Eko’s equity to Elliott. Eli Schulman, of Validity Finance, says contemporary litigation funders can offer a lifeline to startups that are unwilling—or unable—to allocate resources to legal costs, all without requiring founders to part with their hard-earned equity. One of the most talked-about entertainment startups today is Quibi, a mobile-only entertainment platform founded by Jeffrey…
In this quick video, Wendie Childress dispels five common myths about litigation finance to help clients and their counsel better understand if this tool is a good fit for them. READ THE TRANSCRIPT: Companies of all sizes are facing financial challenges right now as a result of COVID-19 and the current economic downturn. These companies may have valuable assets in the form of legal claims, the costs and risks of which can be offset through…
With the rise in corporate bankruptcies as the economy reels from COVID 19 comes tough choices for companies in distress and the trustees that represent them. Should they spend precious limited capital to take meritorious claims to trial, or settle for pennies on the dollar? How can they hire the best trial counsel to pursue those claims when legal fees are beyond the company’s constrained budget? What would a loss mean for the restructuring process,…