“Investors in the growing field of funder-backed litigation, which finances business disputes in exchange for a cut of the proceeds, are eyeing bankruptcy court as a potentially lucrative new venue,” reports the Wall Street Journal‘s Tom Corrigan.
Chilmark Partners, a bankruptcy and restructuring firm, and litigation funder Burford Capital “will team up to finance and advise on legal disputes arising out of U.S. bankruptcy cases.”
ILR President Lisa A. Rickard issued a stark warning.
“In any area that it operates, litigation financing distorts justice by injecting the profit motive into litigation and putting investors’ interests ahead of the plaintiffs’,” Rickard told the Journal.
Read the full story here.