OPINION: Overreaction Over 3rd-Party Class Action Funding

Law360, New York (August 25, 2016, 1:34 PM EDT) -- Ralph Sutton

Julia Gewolb The legal blogosphere is abuzz with discussion of Gbarabe v. Chevron Corp., No. 14-cv-00173, 2016 (N.D. Cal. Aug. 5, 2016). In this discovery dispute, Judge Susan Illston compelled a class action plaintiff to produce his confidential litigation funding agreement to the defendant. The decision is being hailed as evidence that "judges in the future may feel compelled to require the disclosure of third-party funders," forcing funders "to change their playbooks." Others claim that the decision "has the potential to force" funders "out of the shadows" and is a "cautionary tale" that "will profoundly impact the practice of third-party funding...

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