August Legal Funding News Roundup

The Headlines

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Funding litigation is a billion-dollar business

Through a number of different perspectives this article touches on the growing acceptance and availability of funding in the commercial U.S. litigation funding market and the more opaque pre-settlement plaintiff funding market.  

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The Funded: Former Peter Thiel fellow raises $10M to invest in small biz lawsuits

Legalist added $10,000,000 to their coffers to fund small business lawsuits using a proprietary algorithm. This process assesses multiple case factors to identify potential investments.  

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Not Your Usual Alternatives

New Mexico Educational Retirement Board is making moves into atypical, for now, investment alternatives, including litigation finance  

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The Effect of Third-Party Funding of Plaintiffs on Settlement

Andrew Daughtey and Jennifer Reinganum, professors of economics at Vanderbilt, confront the policy concern emerging in plaintiff legal funding regarding pre-settlement plaintiff advances and how they undermine settlement.

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This 23-page paper, which covers topics like settlement bargaining and optimal funding dynamics in addition to the effect of information asymmetry on bargaining between plaintiff-funder and plaintiff-defendant, is well worth the read.  

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[Audio] A Half-Billion Dollar Bet: Burford Director Dishes on Lit Funding Industry's Future

This podcast (Unprecendented) includes  an interview with Managing Director of Burford, Travis Lenkner. Lenkner touches on several important funding themes, such as the effects of money flowing into the legal system, why the commercial industry is growing and what he thinks will happen once funding is commonplace.  

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Odd's and Ends

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1. Business Litigation Alert: "No Objection - Why Tort Lawsuits in the U.S. are Declining
2. This is what analysts have to say about Burford Capital limited (LON:BUR) after last week
3. What Does it Take to Start a Hedge Funding or Litigation Finance Fund?
4. A Rising Tide Lifting Seaworthy Boats in Litigation Finance
5. Woodsford funds litigation boutique