Despite Its Allure, Litigation Funding Is Just ‘The Cost of Doing Business’ for Class Counsel

A US federal district court has rejected a novel request from class counsel for reimbursement of litigation funding expenses, stating that litigation funding is just “the cost of doing business” for class counsel. Among the costs for which counsel sought recovery were a $300,000 payment to a broker that reportedly arranged the litigation funding agreement, as well as $15 million to be paid to the litigation funder, which represented a $5 million return on the funder’s $10 million investment. More from Akin Gump.