Hello and welcome to Vinson Litigation Finance’s Litigation Finance Blog. Litigation Finance continues to be a growing phenomenon in the United States. But despite the increase in demand for alternative fee arrangements, the application can still puzzle seasoned professionals. This blog is intended to provide clarification on the benefits of litigation finance and to help decipher through the world of third-party litigation funding. We hope you find the content informative and helpful.
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While Alternative Litigation Finance (ALF) has been in broad use in the U.K. and Australia for over a decade, it has only become a common tool for funding lawsuits in the United States in the past few years. American lawyers and businesses are growing more sophisticated in their understanding of the practice, but misconceptions still abound. Here, we address 10 of the most common concerns. Misconception 1: ALF encourages frivolous lawsuits Cases that pass muster […] Read On
Financing a lawsuit or arbitration can be extremely expensive, especially when the case is a complex commercial dispute. Because of the substantial costs associated with these disputes, there are times when plaintiffs do not have the financial capabilities to pursue claims or are forced to settle for terms that they would not otherwise accept. Litigation financing is a resourceful way to pursue meritorious claims and obtain a satisfactory settlement or damage award by providing plaintiffs […] Read On
Complex commercial litigation is expensive, often prohibitively so. In recent years, litigation finance (LF) has emerged in sophisticated markets as an option for cases with a strong likelihood of success. For law firms, this form of funding can be a striking competitive advantage that directly facilitates high-value matter arrangements, strengthens existing client relationships, reduces firm risk and generates increased profits. Commercial LF entails a third-party funder providing nonrecourse capital to fund legal fees and expenses […] Read On
Vinson Litigation Finance CEO, Dr. Donald E. Vinson, recently wrote an article on litigation finance in whistleblower actions. Below is a portion of his article. To read the full feature, visit Law360 (subscription required). In the fight against fraud by the U.S. Department of Justice, the participation of alternative litigation finance (ALF) companies has emerged as a potent weapon. Recent verdicts in whistleblower cases with respect to the qui tam provisions under the False Claims […] Read On
In our last two posts, we talked about the benefits that litigation finance companies can provide big and small firms alike. But how do you choose the right litigation finance partner? There is an ever-growing array of funders that can provide capital to help you grow your practice, diversify your fee arrangements and monetize your current cases. That's why you should look at the additional value they can offer, value that separates capital providers from […] Read On
While Big Law firms must consider a variety of factors when taking on new clients and cases, smaller and contingency-based firms often have very different considerations. In order to build reputation and get a practice off the ground, some firms may start off taking cases on a contingency basis. But in doing so, they find themselves strapped financially when they want to expand and grow. And finding clients that are able and willing to pay […] Read On
When one thinks about who could benefit from litigation financing, large corporate law firms are not top of mind. But thinking that lawyers at such firms can't utilize such financing is a mistake. If you're at a BigLaw firm, you can realize many advantages from using litigation financing, including: Helping to build your practice With litigation financing, partners – especially younger ones who are just starting to build their practice – have greater flexibility to take […] Read On
Written by: Dr. Donald E. Vinson, CEO Over the past year, patent practice has become prominently controversial over how to curb non-practicing entities (NPE), aka patent trolls, without affecting American innovation adversely. In a recent IPWatchdog article, “If patent reform goes wrong,” Joseph Allen argues that an objective assessment of the need for patent reform should take into account patent owners who have legitimate infringement claims but to pursue them feel they must turn to […] Read On
By: Dr. Donald E. Vinson While the doors to litigation funding began to open in England as early as 1967, third party funding for commercial litigation has only recently begun to gain widespread acceptance in the United States. This innovative approach to financing the ever more exorbitant costs of prosecuting meritorious legal claims is helping small businesses, institutions and even large corporate entities enforce their rights and protect their assets. With that being said, the […] Read On
By: Dr. Donald E. Vinson A U.S. District Court Jury recently awarded $466 million in damages to Masimo Corp. in its patent infringement suit against Phillips Electronics North America. Reminiscent of David versus Goliath, Masimo defeated the world’s largest lighting company in a dispute that involved innovative technology used in fingertip equipment that monitors blood oxygen and pulse rates using light absorption. The jury award was the third largest in 2014 for a patent violation. […] Read On