U.S. Chamber Institute for Legal Reform (ILR) President Lisa A. Rickard writes in the New York Times that news of billionaire Peter Theil investing in Hulk Hogan’s Gawker lawsuit “sheds light on this fast-growing industry of hedge funds, lawyers and other profiteers investing in third-party litigation financing”.
“This practice is a cancerous growth on our civil justice system, turning our courts into profit centers, increasing the number of lawsuits in our already over-sued society, shifting control of lawsuit decisions toward funders rather than litigants, and reducing settlement dollars for truly deserving victims”, writes Rickard.
“There’s no question that third party litigation financing offers big financial returns from other peoples’ lawsuits”, she concludes. “But should we really be turning our courts into casinos”?
Read the full op-ed here.