August 22, 2022

California lawmakers are set to vote before the end of the month on legislation that would allow the California bar to test new legal service models to make them more affordable. An amended version of the bill would still prevent non-lawyer companies from co-owning firms, however, and ban the sharing of legal fees with non-lawyers, thus preventing firms from going public or taking investments from litigation funders and others. Despite these developments, William Farrell Jr. of Longford Capital still predicts that California will eventually loosen its regulations.
Lawyers led by McCue Jury & Partners and Mishcon de Reya LLP are aiming to go after billions of dollars of sanctioned Russian assets with the help of investments from hedge funds, family offices and litigation finance firms, according to a report by Bloomberg. The report cites unnamed sources as saying that the lawyers are looking to raise funds to file legal claims against sanctioned Russians, with any proceeds largely being used to compensate Ukrainians for losses incurred from Russia invasion on its neighbour. Investors would receive a cut of any successful claims.
The SEC’s enforcement lawyers and examiners are moving closer to gathering data on investments hedge funds make in support of litigation, as the financing arrangements grow in popularity. Under the proposed reporting, funds would be required to disclose the percentage of their money that goes toward litigation finance, as part of a net asset value calculation that excludes liabilities.

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