With a question mark over equities, American investors have found a new way to make money, and it's not pretty.
The New York Times, in a report done in conjunction with the Center for Public Integrity, reveals that banks, hedge funds and private investors are now putting their money into individual and private lawsuits. They have invested more than one billion dollars in these lawsuits.
Some would say this gives everyone a chance to have their day in court. But it what really produces are abuses of the legal system. With banks and hedge funds pouring in money, finance companies and banks are lending enormous amounts of money for these lawsuits and clients come second. Not to mention creating potential conflicts of interest.
The alarming part is that the system would allow lawyers to borrow money at usurious rates because it's being bankrolled by investors. How then could you expect them to represent their clients fairly? The New York Times tells one story where a woman injured in a 1995 car accident outside Philadelphia borrowed money for a suit, as did her lawyer. She won $169,125 in 2003 but the lenders were owed $221,000.
This is not about giving everyone their day in court. It about taking greed and exploitation to a new level.
no comment untill now