Agreed that more competition amount litigation funders is a positive however in regards to the slice of the pipe being taken by lawyers this would depend on how they are charging for class actions.... my assumption would be that they are charging for services rendered. Meaning that they are paid for amount of work done regardless of the size of the settlement.
Litigation funders take a percentage of the payout I don’t think this applies to lawyers. Likewise i would assume that these are NOT no-win-no-fee and that Shine would be paid (per hour) for it’s work on class actions regaredless of the outcome and the size of any settlement. This is why i found it very odd that Shine was funding some of the class actions since. In fact I don’t think lawyers are currently allowed to charge this way (saw an article a while back about potential change to allow it that wasn’t implemented yet) but i’m not an expert so perhaps I’m mistaken.
SHJ Price at posting:
87.0¢ Sentiment: Hold Disclosure: Held
(20min delay)