I recently had the chance to watch a CBS clip about litigation funding, and wanted to take a moment to share my thoughts.
First, let’s start with the good: litigation funding is an important tool that allows individuals and small businesses (the “Davids”) to take on larger, more capitalised opponents (the “Goliaths”).
Without it, many people would be unable to afford the high costs of legal action. Additionally, litigation funding is one of the fastest growing asset classes proving its growing usage amongst lawyers.
Now, let’s address some of the negative points raised in the clip:
- Complicated pricing structures: Not at Sentry. Our Rapid Raise product has a fixed, transparent cost that is easy to understand. In fact, it is likely the cheapest product in its field.
- Funders receiving a larger share of the award than the customer: Not at Sentry. Our return is fixed and not linked to the award, and our agreements contain a clause ensuring that the customer receives the majority of any award.
- Complicated agreements: Not at Sentry. Our agreements are written in simple language by a leading specialist law firm, and are issued through the customer’s representing law firm, who confirms that they have provided legal advice on the terms of the agreement. We only work with approved law firms and never directly with customers, ensuring that their best interests are always being considered.
- Funders influencing settlement and litigation decisions: Not at Sentry. Our agreements clearly state that the litigation is to be run solely by the law firm and customer, with no input from the funder.
- Funders being kept a secret: Not at Sentry. We are transparent and encourage law firms to disclose to the other side that their customer is using our funding and ATE insurance. We see these as added strengths to any litigation.
- Lack of regulation: Sentry is a leading advocate for the regulation of litigation funding and our portal is built with transparency in mind. We are the only litigation funding company to partner with the UK Law Society and Sentry Funding Limited is regulated by the Financial Conduct Authority. We are also working towards Cyber Security Plus and ISO accreditations.
I hope this gives a fair reflection of the litigation funding industry, and how Sentry differs from the norm. If you have any questions, please do not hesitate to reach out.
You can watch the original clip here: CBS NEWS
Happy New Year!
January 5, 2023
Insights
