When Litigation Funding Spawns Even More Litigation

A case in an Illinois federal court could shed some light on an interesting question: what does litigation over litigation funding look like?

A complaint filed on Wednesday by 1st Class Legal, a U.K.-based litigation funder, claims Chicago attorney Raymond Niro took more than $3.5 million to fund three patent cases over a period stretching back to 2011, but hasn’t told the fund how the money was spent, or given a full accounting of any judgments won in the cases.

The complaint also alleges Niro has received $4.5 million in settlements without paying the 10 percent of that total owed to 1st ...