> ... blurring the lines between equity and debt no matter what you call it. I agree that calling litigation financing a loan may be misleading because it coul

> ... blurring the lines between equity and debt no matter what you call it. I agree that calling litigation financing a loan may be misleading because it could look more like debt or equity, depending on the structure. If the premium is fixed, then it looks like a zero-coupon corporate bond, except with uncertain maturity. If the premium is a percentage of the recovered amount, then it looks more like a stock investment. The structure will probably also depend on the entity being funded (a corporate entity, a law firm, or an individual plaintiff). For a law firm, there are ethical restrictions on fee-sharing with non-lawyers. For individuals, there may be consumer protection laws that apply. Also, if the structure looks like a loan then laws regulating lenders may apply. I'm not an expert in this, I just know enough to know it's complicated.