Clients are crying foul over their dealings with Pravati Capital and experts are questioning the structure of the deals and the startlingly high interest rates the company charges. More from Bloomberg Law.
Clients are crying foul over their dealings with Pravati Capital and experts are questioning the structure of the deals and the startlingly high interest rates the company charges. More from Bloomberg Law.
A recent survey shows that funders and lawyers aren’t seeing eye to eye on mandatory disclosure, with more than three-quarters of funders disagreeing that disclosure of funding should be mandatory at the start of cases, while more than half of lawyers think the opposite.
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.
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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