We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Hedge Funds Aim To Win Big By Funding Lawsuits

Law360 (September 5, 2006, 12:00 AM EDT) -- The $1 trillion hedge fund industry has a new moneymaking trick up its sleeve: funding lawsuits. But while the risky strategy may be profitable for the funds, this new trend in litigation has some experts questioning the legality of the practice.

Hedge funds have begun speculating in litigation by either offering funding to companies involved in litigation, or purchasing claims outright from financially strapped plaintiffs.

Although as an investment strategy the practice seems risky, hedge funds are no strangers to weighing the pros and cons of...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.