RE: Shape of the deal10 Sep 2022 09:19
I think the entire financial arrangement means that both parties are naturally aligned with little need for interference. The higher % of a lower damages figure will naturally lead plaintiffs to push for the maximum they can reasonably hope for. So I do think that cases of inherent differences of opinion would be very rare EVEN IF funders were directly involved.
I think it’s also worth mentioning that once the case is underway, I believe what Sammy is saying and funders are perfectly passive. That doesn’t mean to say, though, that funders make their feelings known about possible amounts etc at the point at which the case is being stress tested, just prior to a deal being signed.
So I’m with Feeks there are elements of both in play, but funders are by and large totally passive.