The Feb. 8 issue of Forbes alerts readers to a strange and troubling new phenomenon: litigation investing. Companies like Mighty provide "investors" (more accurately: gamblers? loan sharks?) the opportunity to make loans to plaintiffs to help them while their lawsuit is pending, with repayment contingent on success.
Some problems: First, interest rates are predatory — upwards of 30% most of the time, reports Forbes. So it's not exactly a great opportunity for the plaintiff. The Forbes piece recounts the story of one plaintiff who received multiple "investments" and ended up get hounded even in bankruptcy. Second, will gambling on other peoples' lawsuits taint the judicial process? What if one of the "investors" knows a juror?
(HT: Dan Brown.)