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Demarco for Leader’s League: “Litigation funding can help balance the scales of justice”

Our Director and head of legal assets, Guido Demarco, explains in this Q&A for Leader’s League the sector’s growth and dispels some of the misconceptions surrounding it.

Trends and innovations, “best friend” relationships between law firms and litigation finance firms, how can companies use litigation financing as a tool to help manage cash flows, and what should law firms know about the practice are some of the subject matters explained by Demarco.

We expect that 2022 will bring more regulatory developments, and although stakeholders usually welcome regulation to bring clear rules and transparency into the equation, there are concerns that over-regulation could affect the industry, including access to justice for the claimants“, said Demarco.

Regarding the relationship between law firms and litigation funders, Demarco explained that this type of relationships will continue to develop deep roots during this year. “Portfolio finance is already a reality and will only become more entrenched in 2022, with similar cases being combined into “bulk litigation”, which can increase efficiency from a budgetary standpoint, or combine different cases to increase risk diversification“, he argued.

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