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This is not, generally, the law firms but legal investment companies (often founded and or run by ex-attorneys). There’s two, under reported, investment strateg
by mikeryan 5y ago
This is not, generally, the law firms but legal investment companies (often founded and or run by ex-attorneys). There’s two, under reported, investment strategies in law. The first is funding class action lawsuits for a cut of the return - occasionally this can be paying out the actual class before a judgement and betting on getting a higher return when the case settles or is adjudicated. The second is this one, which is paying out to people who have already won a case and need cash fast before the normal payout date. It’s essentially payday lending for smaller settlements.
The billboard guys are just, usually, getting paid their normal cut of a lawsuit.
- mistrial9 5y agoex-attorneys !!
- Kon-Peki 5y agoLitigation financing - funding the lawsuit in exchange for a percentage of recovery - is not limited to class actions. I knew someone that was in a firm that did this. Everything I ever heard about it from him made it sound like it was run in a very similar manner to venture capital firms. I never once heard the word "loan" or any indication that the risk of losing every penny invested on a specific lawsuit was anything other than "high". Now, these firms aren't very likely to even take a meeting from the type of law firm that advertises on billboards or TV.
- t3rabytes 5y agoFirms that handle lemon law cases in my state operate this way, too -- no fee for the client assuming the case is actually worth a damn because the law includes a provision that the automaker pays the legal fees if they win a buyback/replacement/remedy.