There is money to be made investing in lawsuits. That’s the proposition at the heart of chief European correspondent Richard Lloyd’s cover story, “The New, New Thing” (page 22). So far, the number of those betting they can build a successful business on underwriting commercial litigation in this country is small, with the main players being a pair of publicly listed U.K. funds, Juridica Capital Management and Burford Capital Limited. The concept of third-party litigation funding has been spreading around the world in recent years, but the United States — where, Lloyd notes, a corporation’s litigation-spend can run into the hundreds of millions of dollars — represents potentially the most lucrative market for those looking to make such an investment. And while Juridica and Burford have both enjoyed some modest success so far, the real question is whether they — and any others who might seek to follow their lead — will be able to tap into that lucrative U.S. market in a big way. Lloyd’s story offers an assessment of their prospects.
There is definitely money to be made as a serial whistle-blower. That’s clear from staff reporter Amy Kolz’s examination of the numerous fraud cases filed by Joseph Piacentile using the qui tam provisions in the federal False Claims Act. In “The Professional” (page 28), Kolz documents how Piacentile has fashioned a qui tam career that has helped return more than $1 billion to the U.S. Treasury — and netted him millions of dollars in the process. To Piacentile’s supporters, he is a hero; others view him in darker terms. Once you’ve finished Kolz’s detailed account, you’ll surely have your own opinion.
