Over the past 48 hours the media has been abuzz about litigation finance with the revelation thatPeter Thiel has been fundingHulk Hogan’s legal case against Gawker. Our portfolio company Mighty has some must read opinions on the topic.
This is not the first instance of a celebrity funding a high-profile legal case. We’ve written about Taylor Swift’s promise to pay the living expenses of Kesha so she could sustain her case against Sony, as well as Donald Trump’s offer to fund the legal costs of anyone who beat up a protester at his rally. We at Mighty quickly linked these two events to litigation finance, a connection the media ignored in both cases. But the Peter Thiel Gawker story is different. The New York Times noted that litigation finance helps not only large cases like Hulk Hogan’s, but also lawyers working on small contingencies for everyday, meritorious plaintiffs.