NYT: Investors Put Money on Lawsuits to Get Payouts

In the article written by Binyamin Appelbaum titled "Investors Put Money on Lawsuits to Get Payouts" and published in The New York Times, Mr. Appelbaum discusses the new investment opportunities that large banks, hedge funds and private investors are investing in.   The premise of these investments is to bankroll other people's lawsuits such as medical malpractice claims, divorce battles and class actions against corporations and in the process collect an interest at annual rate which could be as high as 24 percent.  The rise of these lawsuits is attributed to the high cost of litigation.  While these new investments may sound like a good deal to the investors, they could also fuel abuses, including cases initiated and controlled by investors.