NY City Bar Group Backs Ethics Change to Aid Litigation Finance (Bloomberg)
Bloomberg, March 2, 2020
NY City Bar Group Backs Ethics Change to Aid Litigation Finance
A New York City Bar Association group studying litigation finance has released a report endorsing the practice where third parties invest in lawsuits for a share of returns and has proposed changes to the state’s rules of professional conduct to regulate portions of the burgeoning industry. The report said lawyers and clients will benefit from “less restricted access to funding” that they say could be accomplished by changes to Rule 5.4 of the state’s rules of professional conduct. It also said plaintiffs in most circumstances should not be required to disclose third-party interests in their lawsuits.