Litigation Finance and Alternative Funding

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Litigation Finance and Alternative Funding

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Our Litigation Finance and Alternative Funding Group achieves end-to-end solutions in this emerging area, and helps our clients advance and protect their rights as plaintiffs and defendants in judicial and arbitral disputes pending across the U.S.

Stevens & Lee lawyers have been at the forefront of this market, assisting clients with funding arrangements, then acting for those clients consistent with the arrangements. This has included obtaining market-tested terms from competing funders.

Our work has assisted clients:

  • Seeking to assert claims without reducing income or diverting capital
  • Securing funding for part or all fees and out-of-pocket costs connected with a specific claim
  • Seeking funding for a portfolio of claims involving unrelated parties in separate actions
  • In circumstances which make it difficult or impossible to pursue claims or to defend them as rigorously as necessary, whether due to short-term or structural financial circumstances
  • With a need to better rationalize or manage litigation costs and their treatment for reasons germane to their businesses, or in other unique circumstances

Our group has proven and meaningful relationships in this marketplace. We have negotiated and helped clients close multi-million dollar agreements with litigation funders pertaining to insolvency and other commercial litigation claims.

Representative Recent Engagement

Litigation funding arrangements ordinarily are not disclosed publicly, or as relevant in a specific dispute. We respect and maintain those confidences.

In a matter publicized due to its particular facts, however, in 2016 we closed a $26.2 million sale to Gerchen Keller Capital, LLC (now a part of Burford Capital), at the time the largest capital provider in litigation finance, of the right to receive a portion of net recoveries from a bankruptcy trustee’s $213 million judgment against The Renco Group, Inc. and Ira L. Rennert after a jury trial. The transaction closed while the judgment was on appeal to the U.S. Court of Appeals for the Second Circuit.

This was a first-of-its-kind transaction. No known bankruptcy trustee or debtor in possession has ever sold an interest in the right to receive litigation recoveries (although litigation funders sometimes provide post-confirmation financing to plan trustees on terms that are not publicly disclosed).

This transaction was covered by The American Lawyer, Crain’s, Bankruptcy Law360 and other media.

The Litigation Finance and Alternative Funding Group includes lawyers from the firm’s Bankruptcy and Financial Restructuring Department and Litigation Department, and draws from the expertise of professionals across the Stevens & Lee/Griffin platform.

Jason D. Angelo

Associate

jda@stevenslee.com

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Wilmington 302.425.3311

Nicholas F. Kajon

Shareholder

nfk@stevenslee.com

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New York 212.537.0403

Suzanne M. McSorley

Shareholder

smcs@stevenslee.com

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Princeton 609.987.6663

Constantine D. Pourakis

Shareholder

cp@stevenslee.com

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New York 212.537.0409

Eric M. Robinson

Shareholder

emr@stevenslee.com

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New York 212.537.0408