Bloomberg Law
Nov. 17, 2021, 11:01 AMUpdated: Nov. 17, 2021, 8:04 PM

Clients Cry Foul Over Litigious Litigation Finance Company (4)

Valerie Bauman
Valerie Bauman
Senior Investigative Reporter
Roy Strom
Roy Strom

Texas attorney Christopher Phillippe thought the deal was simple: Get money up front to pay for litigation costs and pay it back only if he wins in court.

But the 81-year-old lawyer says that’s not how it worked when his solo practice accepted $55,000 from Scottsdale, Ariz.-based litigation funder Pravati Capital in 2019.

“I had to pay them back no matter what,” he said, noting that he now owes roughly $160,000, with interest still accruing, even though he only won a single case out of the dozen listed in his contract with Pravati—and that one netted him just $3,000.

The ...

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