Monday, November 15, 2010

Hedge funds and banks lend for mass litigation

The New York Times has a big front page story Monday November 15 about the way hedge funds and banks and other investors are bankrolling mass litigation, mostly in the environmental liability and workplace areas (call them “Rainmaker” cases if you like, after John Grisham’s novel and movie), or medical malpractice, divorce, and class actions. Some of the investors include Counsel Financial and Oasis.

Some states have laws trying to curb the practice, but they seem to be ineffective.

The story by Binyamin Applebaum is titled “Borrowing to Sue: Putting Money on Lawsuits, Investors Share in the Payouts”, link (website url) here.

It doesn’t take much imagination to link this to the mass litigation of copyright trolls, including Righthaven, and the US Copyright Group. Curiously, there is a lot of other mass litigation in Nevada over real estate development.  The political or legal climate there seems to encourage it.

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