The U.S. Court of Appeals for the Seventh Circuit recently ruled in favor of a Chicago-based law firm in a dispute with a litigation funding company. The case revolved around Signal Funding’s allegations against the firm, Sugar Felsenthal Grais & Helsinger, claiming that the firm engaged in legal malpractice and fraudulently concealed its relationship with a former Signal executive, Farva Jafri. Signal asserted that this concealment aided Jafri in establishing a competing business. Furthermore, it contended that these actions resulted in unwarranted legal fees and forced external investments upon the company. However, the appellate court found no evidence proving that Signal Funding was harmed through the legal advice the law firm provided to Jafri.
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