Law360 quotes Burford Director Andrew Cohen on the topic of a “‘boogeyman’” national security threat in legal finance. Cohen calls the argument “‘classic logrolling’” and “largely illogical even as a hypothetical.”
The article debunks the theory, stating: “…the cohort [of federal and state lawmakers and influential business groups], led by the U.S. Chamber of Commerce, can't explain how the threat posed by an overseas adversary, be they a corporate spy or the Kremlin itself, would be enhanced by including an outside investor in such a scheme, or through any perceived failings in court rules or oversight specific to third-party funding.
“When pressed, they are also unable to say with any clarity — even under the more extreme hypothetical scenarios — what an adversary would gain by using a legal funding mechanism.”
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