Several startup companies that have popped up recently are expected to profit from an unexpected source—high-stakes litigation.
The Wall Street Journal ran a report today about this upcoming trend. Through funds these startups set up, investors can invest in high-stakes litigation in exchange for a portion of the winnings.
The practice is referred to as “alternative litigation funding,” and it can mean millions of dollars in investments and sometimes billions of dollars in returns.
Critics are concerned alternative litigation funding could mean a rise in litigation. Those that support the litigation funding model say it will boost the number of legitimate claims that make it into the legal system.
Read more of the WSJ’s analysis of this growing trend.