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There's an entire industry devoted to the idea of that profit-sharing (legal/litigation financing), and many large firms are financed by what is essentially a l

There's an entire industry devoted to the idea of that profit-sharing (legal/litigation financing), and many large firms are financed by what is essentially a litigation investment company. Very little of this is new ground.

bdowling 7y ago
As far as I know, litigation finance is just a high-interest, non-recourse loan secured solely by a future recovery from a lawsuit. It is used by plaintiffs to pay for personal expenses during a lawsuit. Plaintiffs just promise to repay the principal amount plus interest in case of a recovery, it's not an assignment of all or a portion of their interest in the recovery. So, maybe I misunderstand this. Are law firms actually selling a percentage of their fee in contingent cases to these companies? Or is it structured as a high-interest loan like the loans to plaintiffs?