Texans for Lawsuit Reform

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In the News

Wall St. cashing in on NYC’s legal feeding frenzy

New York Post, December 4, 2018

By: Julia Marsh and Bruce Golding

Wall Street hedge funds are cashing in on New York’s legal feeding frenzy by financing “mass tort litigation” over prescription drugs and medical devices in exchange for a piece of the action when the cases settle, the “Judicial Hellholes” report reveals.

The result is an “unfair playing field for defendants,” the report says.

Tom Stebbins of the Lawsuit Reform Alliance of New York called the funding “the latest money-making innovation for the lawsuit industry.

“Our civil-justice system has been converted into a profit center,” Stebbins said.

“Financiers draw out cases to maximize return, not ensure fairness in the system.”

The situation led the New York City Bar Association to issue a formal ethics opinion in July, barring lawyers from cutting funding deals with non-lawyers.

That edict, intended “to protect the lawyer’s independence of judgment,” followed a New York Times report on a boom in litigation financing by hedge funds.

The Times article, published in June, cited analyst estimates that litigation funding was a burgeoning, $10 billion industry.

It said the $6 billion EJF Capital fund was raising $300 million to finance personal-injury suits, on top of $450 million it had already lent out.

Other funds involved in the business include Fortress Investment Group, Pravati Capital and Virage Capital Management, the Times said.

The American Tort Reform Foundation also cited reports in The Post about Brooklyn-based LawCash and other finance firms that advance plaintiffs money against potential settlements in suits against defendants including the NYPD.

The interest rates on the hedge-fund loans are as high as 18 percent while finance firms like LawCash charge as much as 124 percent.

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Texans for Lawsuit Reform

6 hours ago

Texans for Lawsuit Reform

When 30-year-old Quinnton Allen violated his parole for possession of a firearm, a Houston judge not only allowed him to stay on parole but granted him a PR bond for a felony. Unfortunately, the decision to release him on bond may have cost a man’s life. Read and share: bit.ly/3OvDU5z ... See MoreSee Less

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29-year-old man murdered after judge grants felony PR bond to armed robber recently paroled from prison

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HOUSTON – “I’ve never had any of these defendants we’ve profiled on Breaking Bond on parole and on a felony PR bond charged with murder,” said Andy Kahan with Crime Stoppers. “This is a fi...
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That judge should be held accountable

His family should get a good lawyer & sue the city & the judge…

The judge should be held as an accomplice to the murder before the fact and sued in civil court for his contribution to the death of the citizen.

Texans for Lawsuit Reform

1 day ago

Texans for Lawsuit Reform

Texas ports are thriving today, but in the early 2000s, abusive personal injury lawsuits threatened to shut them down. As the Port of Houston begins a long-awaited expansion, read more about the common-sense lawsuit reform in 2007 that saved our state’s shipping industry in this week’s TLR blog, For the Record: bit.ly/3aeTy6n ... See MoreSee Less

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Texans for Lawsuit Reform

2 days ago

Texans for Lawsuit Reform

Wishing everyone a very happy Fourth of July! ... See MoreSee Less

Wishing everyone a very happy Fourth of July!
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Happy Independence Day America Today we celebrate our Republic 🇺🇸


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lawsuitreform avatarTLR@lawsuitreform·
6h 1544713193846603777

When 30-year-old Quinnton Allen violated his parole for possession of a firearm, a Houston judge not only allowed him to stay on parole but granted him a PR bond for a felony. The decision to release him on bond may have cost a man’s life. Read & RT:

29-year-old man murdered after judge grants felony PR bond to armed robber recently paroled from prison

HOUSTON – “I’ve never had any of these defendants we’ve profiled on Breaking Bond on parole and on a felony PR bond charged with m...

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lawsuitreform avatarTLR@lawsuitreform·
5 Jul 1544441042120089600

Sign up for the TLR Weekly News Roundup to receive a daily digest of headlines & news stories about #lawsuitreform from Texas & around the country!

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Please use the form below to receive a daily digest of TLR Clips - headlines and news stories about lawsuit reform from Texas and around the country.

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lawsuitreform avatarTLR@lawsuitreform·
5 Jul 1544407069297614851

Texas ports are thriving, but in the early 2000s, abusive lawsuits threatened to shut them down. Read more about the common-sense reform that saved our state’s shipping industry in this week’s TLR blog, For the Record: https://bit.ly/3aeTy6n

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Texans for Lawsuit Reform
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