"Litigation financing is a sophisticated scheme for gambling on litigation," said ILR President Lisa A. Rickard, as quoted in a Bloomberg story entitled, Hedge Fund Betting on Lawsuits is Spreading.
"For better or worse, the lawsuit-finance market continues to grow," writes Bloomberg's Paul Barrett. "Hedge funds and others speculating on litigation are making more and larger bets."
Burford Capital, the "largest player" in the U.S. litigation-finance business, reported this week that its revenue rose 35 percent, to $82 million, with a 43 percent rise in operating profit, to $61 million.
Barrett notes that Burford's "most notorious—and least successful—investment" supported the notorious class action against Chevron in Ecuador. Last year, the U.S. District Court for the Southern District of New York ruled that a $9.5 billion judgment against Chevron in that case was the product of fraud and racketeering activity.
Read the full story here.