The practice of litigation financing—using investor money to fund potentially lucrative legal action-- while common in U.K. and Australian courtrooms, has historically been subject to restriction in the United Sates. But that doesn’t mean it’s not happening. Often the practice goes on behind the scenes in U.S. courts, only coming to light when contested by a courtroom opponent. Attitudes towards the process are lightening, however, and now a number of states are allowing it out in the open.
While opponents of litigation financing say that it could potentially lead to a higher frequency of frivolous suits or conflicts of interest, one such investor recently set out to determine what the attitudes looked like in arguably the most relevant demographic: lawyers.