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Cashing in on Cases

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Litigation financing is fast gaining traction in India, with start- ups, law firms, companies and investors betting big on the merging segment. But is it really a win – win formula for everyone?

Simply put, Litigation Financing refers to third – party entities providing funding to help companies or individuals pursue legal tussles for a certain percentage of the claim amount. More importantly, these ventures also help entities chose the right legal strategy with their AI – backed analytical tools.

Business Today article titled ‘Cashing in on Cases’ written by Mr Ashish Rukhaiyar analyses the fine print of litigation finance and the viability of such business ventures.

On this fast emerging trend in the legal arena, Mr. Sumit Agrawal, Founder, Regstreet Law Advisors & former SEBI Officer shared his view and explained that, “Litigation financing can be an alternative to litigation insurance to some extent, as both serve to mitigate the financial risk of pursuing a claim. However, litigation financing provides financing for a specific case or cases, while litigation insurance is a form of indemnity insurance that covers the cost of legal disputes in general.” Mr. Agarwal further commented “Litigation funding has caught the attention of regulatory bodies such as SEBI, Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India and Pension Fund Regulatory and Development Authority (PFRDA). The regulators are monitoring this trend closely to ensure that it is properly regulated and does not lead to any financial misconduct or illegal activities”

Readers are welcome to send their views to Regstreet Law Advisors at info@regsteetlaw.com.

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