The Secondary Market for Lawsuits

Suneal Bedi and Matthew C. Turk examine the emerging secondary market for litigation finance in a new paper, pointing to deals including Nera Capital’s $50 million secondary fund and Omni Bridgeway’s sale of a 70% fund stake to Ares Management as signs that legal claims are beginning to trade more like financial assets. The authors argue that growing secondary activity could complicate existing funder-disclosure rules, while eventually creating an ongoing market price for litigation positions that changes as cases develop and could influence settlement negotiations.

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