Litigation Funders Move Towards Whistleblower Cases
New York Times ran this interesting article by David Kocienewski on litigation funders moving towards buying interests in IRS whistle blower cases. One litigation funder sees this as a growing market.
"David Desser, whose capital management firm specializes in litigation finance, said the market was likely to expand once the I.R.S. awarded its first whistle-blower a check under the expanded program, which is expected later this year.
“As soon as the I.R.S. begins paying whistle-blowers, more people will realize that this is a whole new class of assets to be monetized,” Mr. Desser said. “It will be limited in size, because only a percentage of whistle-blowers will have incentive to sell. But for investors there is potential here for outsized returns.”
