Beware Discovery In 3rd-Party Litigation Funding

Law360, New York (December 20, 2012, 12:01 PM ET) -- Third-party litigation funding has been a growing trend in recent years as a means for companies to offset the risks and high costs of litigation. Third-party litigation funding involves investors who contribute large sums of money to parties on a nonrecourse basis to pursue their claims. Generally, investors only receive a return on their investment if the litigation is successful or if a favorable settlement agreement is reached.

With the amount of risk that this arrangement poses to investors, litigation funding groups perform extensive due diligence...
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