As a relatively new industry in the U.S., litigation finance is often viewed by outsiders as opaque, and has often been viewed with suspicion. To gain insight into the current state of litigation finance, including how it is perceived by the legal community, Bloomberg Law launched its 2nd annual Litigation Finance Survey.
Initial results from the survey show a stark contrast between how those involved and those not involved in litigation finance view the industry. Where 87% of industry participants (i.e., finance companies and firms that have used litigation finance) agree that litigation finance enables better access to justice, only 34% of those with no litigation finance experience agree. And 44% disagree.
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As preliminary results go, these may not be surprising; those with no experience in the industry often have a much different perception of it than those who work in or have used litigation funding.
But could the Covid-19 pandemic change these perceptions?
A commonly cited benefit of litigation financing is that it allows clients to bring claims they otherwise would not be able to afford. For IP cases, for example, litigation financing could enable individual artists or creators to pursue claims they might otherwise abandon. The current economic downturn may amplify this aspect of the industry. As pandemic-related contract and insurance claims increase, litigation finance may level the playing field for potential claimholders. It is also an option for businesses needing funds to defend against lawsuits that could otherwise push them into bankruptcy.
Tell us what you think! Take our Litigation Finance 2020 Survey and share your opinions and experiences. Survey closes Friday, Sept.18.
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