Litigation Funding Scores Regulatory Win Against Uniform Rules

Litigation funders betting hundreds of millions of dollars on court battles again sidestepped new regulation when an influential oversight group abandoned an effort to propose legal restraints.

The Uniform Law Commission this week officially scuttled a yearlong initiative to consider potential litigation funding laws. The group, whose proposals are often adopted by states, opted not to float uniform litigation finance legislation after finding “no clear path toward uniformity,” Case Western Reserve University Law School professor and ULC member Cassandra Burke Robertson said in a recent memo.

The litigation finance industry has grown by leaps in bounds during the past ...