“Litigation Financing” Comes Of Age

A Chicago firm that has been notably successful in the practice known as litigation financing has been acquired by its much larger competitor, London-based Burford Capital for $160 million. This deal represents the maturing of an industry, according to Maya Steinitz, a law school professor and litigation finance expert, quoted in a Chicago Tribune article. “It shows growth and normalization of an industry that was very controversial a few years ago and has really become mainstream,” she said.Litigation financing is said to have gained traction first in Australia and the UK, and then caught on in the U.S. following the recession of 2007-08. While it’s generally viewed as a vehicle for enabling plaintiff class-actions, it is also being used increasingly in business v. business disputes