It is not often that litigation funding makes the national, let alone international news, but the recent allegations made by Muddy Waters in respect of Burford Capital’s accounting practices have even captured the interest of many mainstream media outlets. Whether the accusations stem from a lack of understanding about the risks involved in this incredibly niche market, or whether they have substance, is for investment analysts and the investment community to debate. But we can be sure that headlines such as these will always attract scrutiny by those looking for reasons to denounce litigation funding. Such detractors will link any negative news about the industry to the need for regulation and greater oversight. Continue reading
