Litigation Funding Back "In The Spotlight" Thanks To Burford Crisis

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August 09, 2019

The accusations of misleading accounting facing Burford Capital have “raised broader questions” about the litigation funding industry, the Financial Times writes.

Third party litigation funding has risen to prominence over the past decade “in part, to investors’ quests for higher returns in the era of low interest rates,” the Times writes. But “little reliable information” exists on the notoriously secretive industry, which has led some critics to “say the funders are exploiting the court system for profit.” One lawyer said “part of the job of lawyers like me is to make these funding arrangements uneconomic by trying to string the litigation out for as long as possible.”

Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform, said the developments support her organization’s “long-held view that the third-party litigation funding industry needs greater oversight and transparency.”