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Investing In Lawsuits Beats the Street

Posted by kdawson on from the some-dare-call-it-champerty dept.

guga31bb sends word on the next wave of investment in a slow market: bankrolling others' lawsuits. The practice sounds on the face of it indistinguishable from champerty. "Juris typically invests $500,000 to $3 million in a case, Mr. Desser said. He would not identify the company's backers, but said that 'on the portfolio as a whole, our returns are well in excess of 20 percent per year.' He added, 'We're certainly beating the market.'"

2 of 203 comments (clear)

  1. Patents on software... by pieterh · · Score: 4, Informative

    It relates because the business of software patents is very close to this. Patent litigation in the software sector is much higher than in any other sector and much of that litigation is speculative and funded by exactly the kind of VC TFA is talking about.

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  2. Re:Unethical, but not illegal by QuantumG · · Score: 4, Informative

    Umm.. by "here" do you mean New Jersey? Cause that's the only place in the US that doesn't consider champertous contracts illegal (Bigelow v. Old Dominion Copper Mining & Smelting Co.)

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