Third Party Litigation Funding: Investing in Arbitration
Article from: TDM 4 (2011), in Contingent Fees and Third Party Funding in Investment Arbitration Disputes
It is not uncommon that investors might consider the impact of pending litigation when deciding whether to buy the stock of a company on the open market. For example, think of a company engaged in a litigation proceeding whose outcome may materially influence the price of its stock. The question follows: If investors in the stock market are permitted to invest indirectly in the results of litigation, why not invest directly in litigation itself? From the perspective of a company that is engaged in or is facing the prospect of a legal dispute with serious consequences ...