Funders

Insurance Titans Unite Against Litigation Funders: A New Battle in the Courtroom and Capitol

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In New York, some of the nation’s largest insurance companies are intensifying their critiques of litigation finance companies, despite the fact that many in the industry provide similar products to plaintiffs. Major insurers attribute their rising costs to outside funders who work alongside plaintiffs’ attorneys in significant tort cases—ranging from those involving talc and opioids to the herbicide Roundup. These companies claim that such financing inundates courts with lawsuits and escalates insurance premiums. Following a halt in Congressional efforts to implement a 40% tax on litigation funders, these insurers indicate they will continue to advocate … Read more

Texas Attorney’s Bankruptcy Shifts from Chapter 11 to Chapter 7 Amidst Massive Debt to Litigation Funders

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AUSTIN, Texas — A mass tort attorney has shifted from a Chapter 11 bankruptcy filing to a Chapter 7 liquidation in a move that underscores the significant financial turmoil he faces, reportedly owing hundreds of millions of dollars to litigation funders. This decision marks a significant turn in the attorney’s legal challenges, prompting broader implications for his firm and the clients it serves. The attorney, whose name has not been disclosed, entered Chapter 11 earlier this year, allowing him to reorganize his debts while continuing to operate his business. However, the situation deteriorated, leading to … Read more

Texas Law Firm Secures Bankruptcy Deal, Selling 6,000 Tort Cases to Satisfy Funders

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AUSTIN, Texas — A Texas law firm is poised to transfer approximately 6,000 tort cases as part of a bankruptcy arrangement aimed at repaying its financial backers. This significant move highlights the firm’s struggle to balance its obligations amid growing debts. The law firm, grappling with financial turmoil, has reached an agreement to offload these cases, which are estimated to involve substantial liability claims. This decision is seen as a necessary step to address the financial challenges that have accumulated over recent years. Under the current plan, the cases will be sold to fulfill the … Read more

Bankrupt Houston Law Firm Partners With Litigation Funders to Salvage Proceeds from Ongoing Lawsuits

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Houston, Texas — The financially embattled MMA Law Firm PLLC, based in Houston, has entered into a significant agreement with one of its principal creditors, Equal Access Justice Fund LP. Under the new arrangement, the law firm will share the revenue from its collection of mass tort lawsuits. MMA Law Firm, which recently declared bankruptcy, sees this partnership as a strategic move to stabilize its financial standing while still actively pursuing justice in its large-scale legal cases. These cases typically involve claims against corporations for damages that affect large groups of people. Under the terms … Read more