Legal Research

The New York Times recently ran a short article about a practice that is proving profitable even during the current economic meltdown. According to the article "Investing in Lawsuits, for a Share of the Awards" by Times writer Jonathan Glater,  hedge funds and other investment groups are betting on the outcome of pending litigation. While this may sound wildly speculative, the money men say that by avoiding cases of first impression or mercurial juries they can show an attractive return on their investment. One such investment firm, Juris Capital out of Chicago, invests $500,000 to $3 million in a hopeful case. While they don't publicize what they make on their litigation investments, the fund as a whole posted a 20% return last year. Oh, and one other requirement before they pony up -- some seriously deep pockets on the other side.