Business & Practice

Litigation Finance Won’t Reach ‘Full Capacity’ of $85 Billion

June 11, 2020, 12:56 PM

There is no consensus figure for how much money investors plow into U.S. lawsuits each year. But it is not $85 billion, a number recently put forward as the “addressable market” for litigation finance by a publicly traded litigation financier.

Market Size: Omni Bridgeway says that is how much money U.S. plaintiff lawyers are estimated to earn in a year for commercial litigation. Litigation finance firms mostly pay plaintiff lawyer fees in exchange for a return of their cases’ rewards.

No Chance: A firm executive says the industry likely won’t reach that “full capacity” metric. But it’s unreasonable to suggest litigation funders even want to bankroll every plaintiff lawyer, and the 15-year-old industry’s relatively small penetration raises nagging questions about its potential, Roy Strom writes in this week’s Big Law Business column.

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Saul Ewing Arnstein & Lehr’s Philadelphia office hired Darius Gambino as a partner in the Litigation Practice and IP Litigation Team | Ballard Spahr recently announced that Ann T. Loftus has rejoined the firm as senior counsel in the Business and Transactions Department in Philadelphia, along with David J. Karasko; both arrive from the former Zateeny Loftus, LLP | Thompson Coburn recently added mass tort and product liability litigatorDawn Wright as a partner in Dallas from Thompson & Knight | Alston & Bird hired Joanna C. Hendon as a litigation partner to its white collar, securities enforcement, and complex civil litigation and trial capabilities in New York from Spears & Imes.

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To contact the reporter on this story: Jerome Ashton in Washington at jashton@bloomberglaw.com

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