Litigation Finance Hits a Wall After Bets on Huge Gains Falter

Litigation finance is having a bad year.After predicting huge growth as recently as January 2024, the industry is now finding that hedge funds and other sources of capital are pulling back. The situation has led some litigation finance firms to suspend fund-raising rounds, while others are exploring alternative paths to generate cash. The industry — a $20 billion market that channels capital from investors to lawyers chasing corporate malfeasance — faces an array of hurdles in the form of regulatory changes ...