News
August 26, 2020

TPLF, Short-Seller Use Undermines Securities Class Actions

Two factors in the securities class action arena are exacerbating the potential for conflicts of interest according to an expert analysis by Nessim Mezrahi in Law 360. According to Nessim’s analysis, the use of and reliance on activist short-seller reports as a basis to initiate securities class action claims, and privileged third-party litigation funding (TPLF) agreements have increased the chances of conflicts of interest in securities class actions.

While looking at the issue of TPLF in securities class actions, Nessim cites ILR’s recent research paper “Selling More Lawsuits, Buying More Trouble: Third Party Litigation Funding a Decade Later.” “Allowing TPLF to fester in the class action setting will not only reduce the downside risk to mounting frivolous class actions but also guarantee that such proceedings deliver even less money for the actual class members.”

ILR's Cause for Action Podcast Podcasts Episode 19: Survey Says: European Consumers Want TPLF Safeguards International Initiatives, Third Party Litigation Funding (TPLF) ILR's Cause for Action Podcast Podcasts Episode 18: Why Federal Securities Suits Don’t Belong in State Court Securities Litigation Reform Blog Voices Around the World Call for Safeguards on Litigation Finance International Initiatives, Third Party Litigation Funding (TPLF) Money with gavel Blog Twenty-Eight Organizations Call for a Litigation Funding Pilot Program Third Party Litigation Funding (TPLF) Letters, Comments, Petitions Organizations Call for a Litigation Funding Pilot Program Third Party Litigation Funding (TPLF)
We Use Cookies to Make your Experience Better

What do we use cookies for?

We use cookies and similar technologies to recognize your repeat visits and preferences, as well as to measure the effectiveness of campaigns and analyze traffic. To learn more about cookies, including how to disable them, view our Cookie Policy. By clicking "I Accept" or "X" on this banner, or using our site, you consent to the use of cookies unless you have disabled them.