The Litigation Finance Snare

The case of Burford Capital vs. its corporate client.

Review and Outlook: An indictment of a former President must be for serious offenses with indisputable evidence, not the revival of a seven-year-old case by Manhattan District Attorney Alvin Bragg. Images: Reuters/AP Composite: Mark Kelly

Litigation financing has become a big business, and the largest firm in the U.S. is Burford Capital. In a notable twist, it is now locked in its own litigation as it tries to block a settlement that one of its business clients wants.

In a typical litigation financing deal, a firm like Burford fronts money to a company to pursue a lawsuit in exchange for a sizable piece of a settlement or verdict. The litigation funders work closely with trial lawyers to extract big payouts, and everyone gets private jets.

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