NYC Bar: Lawyers Shouldn’t Split Fees With Litigation Funders (Forbes)

Forbes, August 21, 2018

NYC Bar: Lawyers Shouldn’t Split Fees With Litigation Funders

“New York City’s bar association has decided that it is unethical for lawyers to enter into agreements with companies that finance lawsuits in exchange for a percentage of the recovery. The practice of third-party litigation funding has faced criticism and drawn the attention of regulators around the country who are worried that the eventual payoffs exceed allowable interest rates, though plaintiffs lawyers say it increases access to justice for clients who can’t afford it. The New York City Bar Association released its formal opinion on July 30, interpreting an existing rule on lawyers sharing fees with non-lawyers.”

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