Monday, December 24, 2007

Litigation as a big business opportunity

Much of this money will probably go towards lobbyists to fight tort reform. This should be a boon to corrupt politicians.

Link

But some wealthy investors are starting to dabble in lawsuit investment, bankrolling some or all of the heavy upfront costs in return for a share of the damages in the event of a win.

The London-managed hedge fund MKM Longboat last month revealed plans to invest $100million (£50.5million) to finance European lawsuits. Today a new company, Juridica, floats on AIM, having raised £80million to make litigation bets.

Juridica will make investments in ongoing legal claims, mostly in the US, and loans to law firms to finance their costs in pursuing claims.

HT: Marginal Revolution