Legal Innovators Podcast - Litigation Financing: Separating Fact From Fiction
Bentham IMF’s David Kerstein was a guest on Inside Counsel’s Legal Innovators interview series hosted by Craig Mills, Executive Shareholder at Buchanan, Ingersoll & Rooney. Dave sat down with Craig to shed light on how litigation finance companies work to dispel some of the myths and misconceptions about the industry, and give his take on the kinds of innovations going on in the industry overall.
Many general counsel ponder how large companies should view litigation funding—should it be feared, or is it an opportunity to be embraced? Contributing to the uncertainty is the confusion about what litigation funding firms do, and the impact they have on the legal industry and legal system. Dave assuages some of these concerns by discussing the key differences between consumer and commercial litigation funding and clears up common misconceptions about ethical implications, control and confidentiality.
Dave also discusses opportunities that litigation funders offer to general counsel, including claims valuation and accounting benefits, and when a company should consider engaging a funder. The interview concludes with Dave’s thoughts on recent innovations in the litigation finance industry, such as funding for large corporations, portfolio funding, defense-side funding and how claims syndication is becoming more prevalent as the industry grows.