Investor Claims Litigation
Investor Claims Litigation
Financial advisers and securities firms owe fiduciary duties to their clients. When a broker breaches those obligations, resulting in investment losses, investors may be able to assert several legal claims. These claims include breach of fiduciary duty, unsuitability, and fraudulent misrepresentation.
The federal False Claims Act is the principal statutory mechanism for combating fraud against the United States government. But a new industry has emerged that seeks to profit from litigation through a practice known as third party litigation funding (TPLF). In this article, our team discusses TPLF and its impact on qui tam false claims acts cases. URL https://investmentfraudlawyers.com/gwg-l-bonds-value-smashed-investors-file-claims-for-loss-recovery/
Third party funders advance money to plaintiffs and law firms to cover costs in exchange for a percentage of the recovery. This business model is a significant challenge to the FCA’s anti-retaliation and whistleblower protection provisions.
In the past, allowing a non-party to profit from a lawsuit was against the law. It was called champerty, and dates back to the Middle Ages in England when unscrupulous feudal lords funded rivals’ lawsuits for profit. But a few years ago, New South Wales in Australia rolled back its ancient champerty laws, and a litigation finance industry was born.
How to File a Claim on GWG Bonds and Protect Your Rights
Generally, the terms of a financing agreement are kept confidential between the funder and the lawyer. However, a few courts and states require that these arrangements be disclosed in court or between the parties. Disclosure can help judges and the parties assess whether the funder is exercising undue influence or a conflict of interest in the case.