It’s Not Magic: Another District Court Denies Discovery into Litigation Funding Documents

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The Attorney-Client Privilege and the Litigation Funder as “External CFO”

William Marra of Validity Finance argues that attorney-client privilege should protect a company’s conversations with external litigation funders about the pursuit of a legal claim no less than its conversations with internal executives performing the same functions, as litigation funders perform functions similar to that of a CFO or an external consultant for claimholders that are not well-capitalized and cannot self-fund their litigations.

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EDTX Denies Discovery of Litigation Funding Documents

Michelle Eber of Validity Finance reports that Chief Judge Gilstrap of the Eastern District of Texas recently adopted a majority rule by denying a motion to compel production of litigation funding documents and notes that defendants that continue to demand discovery into litigation funding documents do so against a growing body of caselaw holding that such disclosure is improper.

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