BigLaw's interest in investor-backed lawsuits slow
As investor-funded lawsuits create complications at law firms, BigLaw is hitting the breaks on the practice, according to Bloomberg Law. (Image from Shutterstock)
As investor-funded lawsuits create complications at law firms, BigLaw is hitting the breaks on the practice, according to Bloomberg Law.
A Westfleet Advisors report released Wednesday shows that the 200 largest U.S. firms investors’ new case commitments decreased from 37% in June 2024 to just under a quarter a year later, according to the story.
This is counter to the trend in which BigLaw became comfortable with third-party investments for the cost of suits, also known as litigation finance, according to the story. As a reward for investing in the case, the third-party receives a portion of court awards or settlements, Bloomberg Law reports.
Litigation finance increased to $16.1 billion of assets under management in the year ending mid-2024, up from less than $10 billion five years earlier, according to Westfleet Advisors’ study.
The move infuriated businesses, and some U.S. lawmakers last year unsuccessfully pushed for legislation to stop the practice, according to the story.
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