Lawsuit investment. TIL individuals can fund lawsuits, and receive

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I thought Credit Default Swaps were examples of fucked up incentives, but this is another league entirely.

>>1362074

I work in banking. We've done loans to 2 or 3 firms that do this as their business. They both fund law firms for specific personal injury and other tort cases. We've had a lot of smaller entities looking for loans to break into the industry but it is actually rather consolidated.

The key is the firm's ability to underwrite the loans. I'm not familiar with the programs you're talking about, but it doesn't sound so good.

In our loans we:

1. Have detailed history and faith in the law firm taking the case and that they're taking successful cases.
2. Have the additional due diligence and experience of the company financing the firm.

Unless you get to examine the facts of the case and believe in your ability to successfully gauge the outcome, I don't recommend getting involved.

>What is champerty and why is it illegal?

>>1362109
Look up litigation finance

>>1362200
Look up champerty

>>1362204
I did and as far as i can tell it's not been considered to be a crime for over a century.

>>1362304
>he thinks a common law doctrine simply disappears over time
Just because it hasn't been enforced doesn't mean it won't be enforced, especially now that it's becoming a business (an unregulated one, at that). So good luck with your strategy, but don't come crying when your loan get declared null and void as against public policy and you lose everything.

>>1362327
It won't enforced. These medieval laws have been replaced with other legal ways of controlling abuses, so it's totally acceptable to finance lawsuits, at least in the usa. Hedge funds have been doing it for a while now.

>>1362762
It's cool that you can predict the future with such confidence. With your talent, you should just go straight to picking lottery numbers. You'll have a much higher rate of return.

>Also, stop pretending that you understand concepts that are far beyond your experience or education.

As a legalbro I can tell from experience that lawsuits can have odd twists and turns. They can also drag on for years even if it's a seemingly minor case.

If you have an agreement with a law firm that they would handle your cases to the end for a set amount of money then it could work. If you can't get such a deal then you'll just fund a bunch of lawyer leeches that will suck you dry for minor profits.

I'll just keep filling out claim forms for class action lawsuits and randomly collect my $20-$50 checks throughout the year.

Easy few extra hundred bucks a year