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Litigation Funders Find Opportunity in Bankruptcy

Published in the Daily Journal on January 27, 2016

Greenberg Glusker partner Brian Davidoff, was quoted in a January 27, 2016, article by Daily Journal reporter Steve Creighton on the opportunities for litigation funding of adversary cases in bankruptcy.  The article discusses the current bankruptcy climate, the looming increase of bankruptcies and how litigation funders can be a viable option for bankruptcy trustees.

Davidoff, commenting on the impending increase in bankruptcy filings, noted that funders who are positioning themselves in the industry now are in a very good place to capitalize later:

“Funders are always trying to find the next big opportunity from the marketplace.  I think they sense there is an upcoming opportunity in bankruptcies.”

While Davidoff agreed that interest in bankruptcy litigation finance is the result of the impending increase in filings, timing is also a factor:

“Funders are entering this market at a time where, obviously, bankruptcies are less because the economy is strong.  If they get their name out there and get people to know they’re a resource for the financing of claims, they’re timing it very well.”