Chevron Ecuador: Investing in lawsuits
June 7, 2011
A contract between Ecuadorean villagers suing Chevron and a London firm that finances corporate litigation offers a detailed look at a growing phenomenon in the law: Investing in lawsuits. The contract with a Cayman Islands arm of Burford Group shows the conflicts that can riddle such arrangements, and have led some states, like Nevada, to ban them outright.
The U.S. Chamber of Commerce condemns outside legal finance entirely, saying it can prolongs litigation and induce people to sue for no reason other than they’re being paid to do it. As the Chamber’s highly paid legal experts say in this report: