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Key Takeaways from LFJ’s Special Digital Event: “Investor Insights into Consumer Legal Funding”

This past Tuesday, Litigation Finance Journal hosted a special digital event, “Investor Insights into Consumer Legal Funding.” The panel discussion featured a trio of institutional investors, including Ben Kaplan (BK), co-founder of C9 Partners, Don Plotsky (DP), co-founder of Uinta Investments, and Michael Morris (MM), Managing Director of Northleaf Capital. Dan Avnir (DA), Managing Director of Bryant Park Capital moderated the discussion. 

The panel covered a wide range of ground on Consumer Legal Funding as an asset class. Below are some key takeaways from the event:            

DA: What types of investments do you target across the legal funding marketplace?

BK: We target investments in operating companies. Operating companies with direct or indirect exposure to underlying consumer litigation assets which can include funded assets, with medical liens being the core focus.

DP: We’re looking to basically get investment exposure to the asset—the way we do it is typically in some sort of structured transaction where we’re providing liquidity to the funding company. We’re definitely not plaintiff-facing…we’ll also buy cases directly and partner with funding companies that might be too large for their balance sheets.

MM: We’re about a 15 billion dollar AUM, operating a range of strategies across the credit to equity continuum to get exposure to underlying assets. Generally, we’re looking to deploy $25-200 million or so, in some sort of partnership form with the funder. 

DA: What can you say about your experience with collections these days? Have there been any variants, as compared to pre-COVID levels?

BK: Interesting questions, pre-COVID versus post-COVID. Again, what I’m sharing is from the viewpoint of medical liens where there’s probably more volatility in and around that asset class depending on geography and a myriad of other circumstances—the nature of the treatment whether it’s surgery or MRI.

To summarize, when COVID hit, there was actually, we experienced across a few different areas, a massive acceleration. At the outset of COVID, the takeaway is that there was an acceleration of collections. What I would say is that COVID has advanced…what we’re starting to see now is a backlog of cases attributable to court closures and other issues, that I would say at the beginning of 2021 has started to slow down collections a bit. Insurance companies have taken more of an aggressive posture with respect to litigation and they’re fighting those a little bit more aggressively. So I think we’ve seen an acceleration early on in COVID, and a bit of a slowdown in early 2021.

DA: Don, what are you seeing out there from the funders you’ve been partnering with? Are trials in most states delayed?

DP: In many cases, if not most typically, there’s some sort of settlement involved, rather than necessarily a trial verdict. But we’ve definitely noted an extension of maturity of the assets in the portfolio. Statistically, we would look at an 18-month duration to a three-year final type of profile on the assets that we buy, and we’re seeing things really creep out there beyond three years. Some of the assets that we own, we expected to have gotten greater cash flows than we received so far.

We hear from the funding companies that business has definitely slowed down 20 or 30%, and we’re noting the extension of the portfolio. That certainly seems to be COVID-related.

DA: What are your current return expectations across these assets that you’re investing in? Have the results lived up to the expectations you had?

MM: There are two different lenses through which to look at it. I think in the space overall, in the two primary areas of the US…I do think over the last several years going back even before COVID, you seen some return compression at the asset level. As more money has come into the space, the search for yield that you can’t help but read about, it has made its way into the space a bit.

DA: Are you seeing origination levels still down across the board as compared to pre-COVID levels, or are we beginning to see an uptick as of late?

DP: Again, we’re not plaintiff-facing, so we don’t have people coming through the door. What we do see is fairly steady activity from the funding companies we deal with. What I’ll point out, is that more so than the actual volume of cases, it’s the condition of the financial markets surrounding this asset that are really driving supply.

DA: What is the typical ROI target for a facility to a pre-settlement funding company? What information would you look to review in consideration of a facility?

DP: From an investment perspective, we’re looking for a low-to-mid teen preferred rate of return…so in terms of total return on investment, we would hope to get perhaps slightly higher than that. When you look at all the components of the net return to investors, you also have to take into account that there are enormous cash flows here. We look to deliver 10-12% net annual return to our investors, and after that, 15% IRR.

MM: For us, we’re sort of looking for kind of the best run cleanest plain vanilla senior debt, to make high single digits, and go up from there.

DA: On pre-settlement funding side, if a group starting an origination platform today, what would you say would be the biggest challenges and opportunities?

BK: I think the greatest opportunity is probably that there exists enough people who have been involved with businesses that have become institutional at this point, that there’s some good talent out there in terms of people who really know how to run a business and manage balance sheets and understand the industry. I think it’s an opportunity as the industry has grown…there’s better human capital out there.

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Florida Funder Targeted by Class Action over Data Breach

By Harry Moran |

Whilst funders are often eager to support class actions on behalf of customers who have been harmed by cybersecurity attacks on other companies, a new complaint filed in Florida seeks to represent individuals who suffered losses because of a funder’s own data breach.

Reporting by Insurance Journal covers a class action that has been filed targeting litigation funder US Claims Capital over allegations that it failed to protect its clients’ personal data. The filing of the claim in the U.S. District Court in Miami follows a data breach in January of this year, with the plaintiff alleging that the funder had not implemented sufficient cybersecurity measures and therefore had not properly secured the personal data of the plaintiffs it had provided funding to.

The lead plaintiff in the lawsuit is a Kansas resident named as Timothy Vactor, with the complaint looking to represent other plaintiffs and clients of US Claims whose personal data was exposed as part of the cyberattack. The filing argued that due to the breach, the plaintiffs’ “private information is forever exposed and unsecure”, and that the “exposure of one’s private information to cybercriminals is a bell that cannot be un-rung”.

The funder had reportedly informed plaintiffs it had worked with of the data breach in a letter sent on April 11, over three months after the cyberattack on January 7. The letter informed US Claims’ clients that “certain information related to you may have been acquired by an unauthorized individual as part of the event”. The funder subsequently provided these individuals with an insurance policy in case they had suffered financial losses, as well as some assistance around identity theft protection and cyber monitoring.

At the time of reporting, US Claims has not filed a response to the complaint.

34% of Americans Trust ChatGPT Over Human Experts, But Not for Legal or Medical Advice

By Harry Moran |

A newly released study from Express Legal Funding, conducted with the help of SurveyMonkey, reveals that while 34% of Americans say they trust ChatGPT more than human experts, the majority still draw a hard line when it comes to using generative AI for serious matters like legal or medical advice. The findings highlight a growing national tension between fascination with artificial intelligence and fear of misusing it for high-stakes decisions.

Key Findings from the ChatGPT Trust Survey:

  • 60% of U.S. adults have used ChatGPT to seek advice or information—signaling widespread awareness and early adoption.
  • Of those who used it, 70% said the advice was helpful, suggesting that users generally find value in the chatbot's responses.
  • The most trusted use cases for ChatGPT are:
    • Career advice
    • Educational support
    • Product recommendations
  • The least trusted use cases are:
    • Legal advice
    • Medical advice
  • 34% of respondents say they trust ChatGPT more than a human expert in at least one area.
  • Despite its growing popularity, only 11.1% believe ChatGPT will improve their personal financial situation.
  • Younger adults (ages 18–29) and Android and iPhone users report significantly higher trust in ChatGPT compared to older generations and Desktop (Mac/Windows) users.
  • Older adults and high-income earners remain the most skeptical about ChatGPT's reliability and societal role.
  • When asked about the broader implications of AI, only 14.1% of respondents strongly agree that ChatGPT will benefit humanity.

Expert Insight:

"This study highlights how many Americans are navigating the fast-growing influence of generative AI and natural language processing agents in their daily lives and that ChatGPT is far from being just a fringe use tool," said Aaron Winston, PhD, Strategy Director at Express Legal Funding and lead author of the report. "Most people are open to using ChatGPT for advice—and over a third even say they trust it more than a human expert. But when it comes to high-stakes decisions involving legal, financial, or medical matters, most still prefer real-world professionals. It's a sign that while AI is gaining ground quickly, trust is still tied to context."

Why It Matters:

As AI tools like ChatGPT become more integrated into everyday life, understanding where people draw the line between curiosity and trust is critical. This distinction helps reveal not only how Americans are using AI today but also where they're still relying on human expertise for reassurance and accuracy.

About Express Legal Funding:

Express Legal Funding is a leading pre-settlement funding company headquartered in Plano, Texas, serving plaintiffs nationwide. Recognized for its commitment to ethical funding practices and consumer advocacy, the firm provides non-recourse financial support to individuals involved in personal injury and civil lawsuits—helping clients cover essential living expenses while their legal claims move forward. Beyond funding, Express Legal Funding is a trusted voice in the legal tech and finance space, publishing original research and data-driven insights that inform public discourse and guide industry best practices.

Legal-Bay Lawsuit Funder Launches Legal Funding Calculator for Consumers

By Harry Moran |

Legal Bay Presettlement Funding announces their new funding calculator for customers to compare pricing models of lawsuit loans between funding firms. It should be noted that Legal Bay doesn't charge compounding interest like many other legal funding companies, keeping payback costs lower right from the start. As one of the best lawsuit loan companies in the industry, Legal Bay ensures flat pricing, transparent contracts, and a helpful, knowledgeable staff to walk you through every step of the lawsuit loan funding process.

  1. Legal Bay is a direct funder—not a legal funding broker—which is the first distinction customers should make when researching legal funding options. Here's why:
  2. Being a direct funder allows Legal Bay to expedite cases faster, normally within 24-48 hours after applying, once all documents have been received.
  3. Being a direct funder allows Legal Bay to provide lawsuit loans with cap out provisions for cases that qualify without additional broker fees.
  4. Compound rates can grow substantially over the course of your case settlement funding, while flat interest stays the same at about 20% percent every 6 months.
  5. Legal Bay's lawsuit settlement programs are non-recourse which means the client will not have to pay back the loan if the case does not settle.

Chris Janish, CEO of Legal-Bay, commented, "Our funding calculator gives consumers an invaluable tool to compare payback costs. Plaintiffs will see that our direct funder platform means you deal directly with our staff and underwriters—not a broker. Our direct funding model allows for the fastest approvals, reduced rates, and no added broker fees, keeping your costs low. Legal-Bay's flat pricing—as opposed to compounding interest—and our best price guarantee ensures the lowest rates in the litigation finance industry. On large funding amounts, consumers should be aware of payback costs. The savings of Legal-Bay's flat-rate pricing versus contracts with compounding interest can be substantial."

Legal-Bay's funding model is designed to put more money back in the plaintiff's pocket at settlement. If you or a loved one need an immediate lawsuit loan in advance of your impending lawsuit settlement, please apply online HERE or call toll free at 877.571.0405 where agents are standing by.

Legal-Bay assists plaintiffs in all types of lawsuits, including commercial and mass tort litigation, personal injury cases, slip and fall accidents, property damage, car accidents, medical malpractice, wildfires, and many more. If you're looking for the lowest rates in legal funding, legal funding companies without broker, flat rate pricing or simple pricing legal funding companies, easy to use funding calculator, calculator for lawsuit loans, then Legal Bay is here to help.

Their loan for settlement funding programs are designed to provide immediate cash in advance of a plaintiff's anticipated monetary award. While it's common to refer to these legal funding requests as settlement loans, loans for settlements, law suit loans, loans for lawsuits, etc., the "lawsuit loan" funds are, in fact, non-recourse. That means there's no risk when it comes to loans in lawsuit settlements because there is no obligation to repay the money if the recipient loses their case. Therefore, terms like settlement loan, loans for lawsuit, loans on settlement, or lawsuit loan funds don't necessarily apply, as the "loan on lawsuit" isn't really a loan at all, but rather a stress-free cash advance.

For more information about lawsuit loans, please visit us HERE or call toll free at 877.571.0405 where a skilled agent can answer any questions you may have.