Litigation Funders Set to Prosper in Proposed NY Rule Change (Bloomberg Law)

Bloomberg Law, April 10, 2024 

Litigation Funders Set to Prosper in Proposed NY Rule Change 

A New York City bar committee is pushing to change state rules to allow law firms to assign or pledge fees in exchange for outside financing. Funding to law firms tied to the results of specific cases should be permitted, the New York City Bar Association’s Professional Responsibility Committee proposed last week in two amendments to Rule 5.4(a). The rule bans lawyers and law firms from sharing fees with nonlawyers.