Bloomberg Law
Aug. 10, 2022, 5:18 PMUpdated: Aug. 10, 2022, 7:12 PM

SEC Seeks Hedge Fund Data on Lawsuit Funding as Billions Roll in (1)

Andrew Ramonas
Andrew Ramonas
Corporate Disclosure Reporter

The SEC is looking for hedge funds to provide more information about the bets they place on lawsuits.

A new plan released by the Securities and Exchange Commission would generally require private funds to make confidential disclosures to the agency about the money they invest in litigation finance.

The move would extend the agency’s plans to enhance disclosures related to litigation finance, a mechanism used by litigants and law firms to finance their costs through a third-party company. In January, the SEC proposed a plan to require only large hedge funds to provide enhanced disclosures about investments in litigation finance. ...