How the Finance Industry Is Trying to Cash In on #MeToo
- 6 years ago
How the Finance Industry Is Trying to Cash In on #MeToo
The authorities claimed that R. D. Legal had tricked the players “into costly advances on settlement payouts.”
Just last week, Colorado’s attorney general announced a $2 million settlement with LawCash
and another settlement-advance firm, Oasis Financial, saying they charged personal injury plaintiffs “predatory interest rates.”
The industry says it charges high fees to compensate for the risk of not being repaid.
In addition to providing cash upfront to sexual harassment plaintiffs, some firms are pursuing the more traditional
form of litigation finance, providing money to law firms in exchange for a cut of potential settlements.
In one October news release, Christopher R. Janish, its chief executive, said he had “set aside a large portion of their presettlement cash advance funding
specifically for plaintiffs of sexual harassment cases.” The next month, the firm trumpeted its “special focus for victims of unwanted sexual advances.”
Mr. Janish said he did not know if the pitches had landed any clients.
The Brooklyn company offered cash upfront to sexual abuse plaintiffs “if you or someone you know is in need of financial help.”
The settlement-advance firms get paid back only if a plaintiff collects money from a lawsuit.
Nova — the same company that advanced money to Ms. Rothermund — plans to announce
that it will provide financing for lawyers pursuing Hollywood sexual harassment cases.
Legal Bay of Fairfield, N. J., is one of the settlement-advance firms trawling for sexual harassment clients.
The authorities claimed that R. D. Legal had tricked the players “into costly advances on settlement payouts.”
Just last week, Colorado’s attorney general announced a $2 million settlement with LawCash
and another settlement-advance firm, Oasis Financial, saying they charged personal injury plaintiffs “predatory interest rates.”
The industry says it charges high fees to compensate for the risk of not being repaid.
In addition to providing cash upfront to sexual harassment plaintiffs, some firms are pursuing the more traditional
form of litigation finance, providing money to law firms in exchange for a cut of potential settlements.
In one October news release, Christopher R. Janish, its chief executive, said he had “set aside a large portion of their presettlement cash advance funding
specifically for plaintiffs of sexual harassment cases.” The next month, the firm trumpeted its “special focus for victims of unwanted sexual advances.”
Mr. Janish said he did not know if the pitches had landed any clients.
The Brooklyn company offered cash upfront to sexual abuse plaintiffs “if you or someone you know is in need of financial help.”
The settlement-advance firms get paid back only if a plaintiff collects money from a lawsuit.
Nova — the same company that advanced money to Ms. Rothermund — plans to announce
that it will provide financing for lawyers pursuing Hollywood sexual harassment cases.
Legal Bay of Fairfield, N. J., is one of the settlement-advance firms trawling for sexual harassment clients.