Litigation finance has often been viewed skeptically by some who perceive it as a distortion of the justice system, enabling wealthy individuals or businesses to profit by underwriting lawsuits. However, as highlighted by Bloomberg Law reporter Emily Siegel, the reality of litigation finance is more nuanced and primarily focused on mass torts rather than cases against individuals or small businesses.
In a recent episode of the On The Merits podcast, Siegel, alongside her colleague Beth Wang, delves into how the day-to-day operations of litigation finance function in practice. Wang also discusses New York’s proposed rules aimed at regulating litigation finance disclosures, noting that these rules are so narrowly defined that they would apply to a very limited number of situations.
This regulatory landscape suggests that despite efforts to bring greater transparency to litigation finance, the impact on most cases may be minimal. For more insights, you can find the full discussion here.