​Litigation Finance – crowdfunding for class action lawsuits

Litigation finance is one of the newest and fastest-growing sectors for investment.

Here’s how it works. Basically, clients + lawyers need money upfront to afford to try a case.

Banks want returns.

So, a bank will pay the lawyer some amount of money to fund their case, and in exchange will receive a certain portion of the (potential) winnings.

The idea is to take the model of something like AcreTrader, and move it over to the litigation finance market.

Vet potential litigation finance deals and post them on the marketplace. Include your expert’s advice on likelihood of winning, and allow members to invest.

Alternatively, they could invest in your “fund” so that they get exposure to all of the deals.

The other interesting aspect of this is with class action cases.

Let’s say I’m a member of a class action suit, and I’m tired of waiting for the settlement.

Through this platform maybe I could go and sell my “share” of the winnings at a fair market price.

Let me know if this is a good idea with potential, the viability to create something like this, any loopholes or things I might have not considered in its implementation etc.