Cash advances against lawsuit recoveries

A recent blog by Walter Olson about lawsuit cash advances, and the NY Times article it cites, ought to give pause to in-house litigators. If “legal finance” companies thrive by offering injury claimants cold cash up front, companies will face more lawsuits. And, why stop with injury claimants when other kinds of claimants seek dollar damages?

What has attracted attention so far are the usurious fees charged plaintiffs by the financers, but the stealth threat to law departments comes from the increased number of cases financing could prompt.

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