Annals of Champerty: Risk Of Third Party Litigation Funding

Calling litigation finance a growing but "risky" field, the Wall Street Journal reports on two big third-party investments that have lately gone bust. A number of specialty firms now maintain multimillion-dollar portfolios devoted to legal investments in litigation, and some hedge funds and individual investors also purchase stakes in litigation as part of a broader investment strategy. (From 2010, here's our first post in the Annals of Champerty.)