ILR - Institute for Legal Reform

12/12/2017 | Press release | Distributed by Public on 12/12/2017 10:08

'Shine A Light On 3rd-Party Litigation Funding'

Referencing third party litigation funding in a Law360 op-ed, Skadden partner John Beisner said the U.S. legal system must 'shed light on a practice that has largely operated under a veil of secrecy.'

Beisner said funding arrangements hide 'critical information that is needed to assess fully whether a lawsuit is being prosecuted consistent with applicable law.' He pointed to the infamous lawsuit over Chevron's liability in South America as an example of how litigation funding arrangements can 'influence the course of the litigation.'

In 2014, that judgment was found to be 'obtained by corrupt means' because of a funding arrangement and has yet to be enforced.