Summary
Is it really legal to invest in a lawsuit?
Analysis
The economy clearly has the investment world & the strategy of where best to put your money upside down. Some used to say the only thing that is a certain is death & taxes. As of recent, it seems to be the potential upside of a law suit. Well this could be the greatest gamble of all. Yes, people are investing in lawsuits & making a bundle. For most states it is perfectly legal as long as it is not basically tied as a loan. If it truly is written as taking a chance with the plaintiff at winning & no repayment if you lose, then for the most part it appears to be perfectly acceptable. Is it profitable? The economy may be down, but law suits have skyrocketed. People are looking to recoup their losses, so why not jump on the band wagon. After all, many think you can just about bet on anything. There are big players in this market, like Credit Suisse & Juris Capital. The reality is many can not afford to see there cases thru to completion because of rising litigation fees. With this influx of cash, many are able to go the extra mile. Does it foster frivolous suits? Most think not. Whether it really is a good investment can likely be answered by an experienced consultant with alot of litigation experience. http://www.investmentnews.com/article/20090405/REG/904039943
