New website launched to finance legal claims

A new website, LexShares, allows investment in legal claims. It helps connect plaintiffs with capital.
How it works: LexShare reviews lawsuits and if it considers the case to have strong merit, the investment opportunity is posted on the website. Accredited investors review cases and decide how much to invest through private investment funds. If plaintiff loses her case, she does not have to pay investors a return. If plaintiff prevails, investors will receive a portion of the proceeds from his lawsuit.
The website allows investors to monitor the progress of the case.

Issues that come to mind:

  • Is the website involved in the practice of law by evaluating cases?
  • what are the consequences on attorney-client privilege and most of all work product protection?
  • Can the website function in states that prohibit litigation finance?

More information are available at…

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