(Opalesque) Litigation finance firms could be unexpected beneficiaries of the coronavirus crisis. Litigation funders are usually paid out when cases resolve. However, as cases stall out in courts that are either closed or wrestling with how to conduct virtual trials, litigation funders stand to make higher returns as a result of the delays. If a case gets caught up in court, litigation funders are often entitled to a bigger payout than they otherwise would be to account for the delay.
Diligence gaps raise flags as litigation finance gets boost
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