In our classic image of an American lawsuit, including class actions, the plaintiffs lawyer pays the upfront costs and then hopes to recoup them from a share of the winnings. But today, this picture is incomplete. It is no longer only the law firm's own war chest that finances a case – so can outside investors and lenders. As Judge Hellerstein has just reminded us, the 9/11 cases he presided over involved such third-party financing. The Ecuadorian plaintiffs' environmental case against Chevron, now pending in the Southern District of New York, is another prominent example in the news.
Banking and Finance Law | Law | Litigation
Litigation Finance: What Do Judges Need to Know?,
Colum. J. L. & Soc. Probs.
Available at: https://scholarship.law.columbia.edu/faculty_scholarship/1123
Originally published in 45 Columbia Journal of Law & Social Problems 525, 2012.