More and more Hedge Funds getting into the act.

Litigation funding has now been around for 15-17 years. What started out with a handfull of small mom and pop companies...has now turned into a "billion dollar industry". Where has the infusion of cash come from? Large banks, wall street, wealthy individuals, insurance companies and hedge funds.
These large sources of capital have come to realize that while stocks, bonds, currency , futures, commodities , puts and calls may be traditional investments, swings in the economy will ultimately control their value; while litigation funding will actually operate in a vacuum, independent of the local, national and world economies. In fact an argument can be made that funding will actually increase during economic downswings..

Your thoughts?

Compounding vs. Non-Compounding; The Sequel.

As a brief followup to yesterday's blog, let me further illustrate for you the comparison between a compounding rate vs. a non-compounding rate. At the end of year three on a $50,000 advance, 3.5% monthly compounding rate you would owe $168,000. At the end of year three on a non-compounding 15 % every 6 month rate you would owe $95,000.
Is that a significant difference, or am I crazy? (Don't answer that).

Moral of the story; Don't take a "quick fix" and allow your client to wind up with a "suffocating , compounding rate" which will make it very difficult to ultimately resolve the case.
Stay on top of things!

Next six weeks; Record fundings expected!

End of the year, trials galore, carriers wanting year end settlements, Thanksgiving, Hannukah, Christmas, vacations, New Years, medicare.......all add up to one thing; Extensive funding needs!
I'm working 7 days a week to keep up and to be accessible to the "plaintiff's bar" and it's clients!
Good luck!

Watch out for Insurance Companies who prey on claimants in the days following the accident.

I was just recently looking at a funding deal; passenger, lumbar fusion, top plaintiff's firm and $1 million coverage and $500,000 respectively on the 2 cars. Looks fine, right? Well almost.
As it turns out the carrier with the $500,000 policy, a fews days post-accident gave the plaintiff $1,500 and had him sign a release. He was not represented by counsel at the time. Yikes!
So while everyone is proceeding in the case...this issue can be brought to the forefront via a summary judgment motion at any time. Of course the plaintiff was unrepresented, didn't know what he was signing and believed it was for medical treatment....but it still"lurks " out there. This practice is sneaky, underhanded and as far as I'm concerned should be outlawed by Insurance Department guidelines or statutory enactment.
How do we curb these tactics? Answer: Prohibit carriers, defendants or third-party TPA's from settling a bodily injury case directly with a claimant for the first 30 days post-accident. What do you think?