Fifth circuit rejects a challenge to litigation funding agreement for lack of standing

Amy Geise and Ken Epstein of Omni Bridgeway review a recent US Fifth Circuit decision that sends a clear message to those seeking to challenge a trustee’s litigation funding agreement: you’d better be on solid ground when it comes to “standing.” In the five-page opinion authored by Judge Jacques L. Weiner, Jr., the court found that the appellant-debtor in the case lacked standing to challenge a funding agreement approved by a Texas Bankruptcy Court. The Fifth Circuit found that the debtor was not “directly, adversely, and financially impacted” by the funding agreement or the bankruptcy court’s order. Read more.