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Making Millions Off Others’ Lawsuits: How Litigation Finance Works

For centuries it was considered taboo for a third-party to have a financial stake in a lawsuit. Today, thanks to an industry re-examining the relevance of legal doctrines from feudal times, a new crop of firms have sprouted to invest in lawsuits for profit. The concept, known as litigation finance, has quickly spawned a multi-billion dollar industry that is getting the attention of the country’s largest law firms.

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