"In June the rules committee of the U.S. District Court in San Francisco proposed that any party to a lawsuit filed in that jurisdiction would have to disclose any financial support that third-party sources known as litigation funders. The next step is for the court to consider the question." -Bloomberg, December 1, 2016. Here is the article.
This initiative is part of the push to make litigation funding transparent. For many of us it was a stunner to find out that venture capitalist Peter Thiel bankrolled "Hulk Hogan v Gawker."
Globally, the litigation financing industry currently is loosely regulated. That's what has some influential constituencies such as the U.S. Chamber of Commerce concerned. Wealthy third parties such as Thiel can gain control of the legal system.
To achieve their agenda, they can flood the courtrooms with lawsuits. In Thiel's situation one motive could have been revenge. Gawker had outed him as gay. In other situations it could be to eliminate competitors, harass an enemy, or lessen the freedom of the media.
In addition, of course, financing litigation can also provide a high return on investment. That is, if the third party bets on the right horse.
Given the money-making potential, this niche is bound to be aggressive lobbyist to prevent excessive regulations. Will it be treated kindly in Trumpville?
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