Genworth Wins Disclosure of Funders Backing Fraud Litigation

Genworth Financial Inc. won access to the litigation finance arrangements behind a court case over its alleged scheme to avoid paying out on long-term insurance by manufacturing the insolvency of a subsidiary.

Attorneys for the policyholders leading the lawsuit must turn over unredacted versions of their agreements with an undisclosed funder, a Delaware judge ruled on Wednesday. He said the pacts raised concerns about conflicts involving outside parties that might improperly influence the case in Delaware’s Chancery Court.

“The class action context seems especially ripe for a third-party funder to exercise improper control over the litigation,” Vice Chancellor Nathan A. ...