Litigation Finance Conferences are still going ahead across the world, including the inaugural 2026 LITFINCON Asia. The conferences are taking place with a marketed tone of triumph and growth despite the widely publicized setbacks fasting the industry. Image Source: MarinaBaySands

According to Insurance Journal, hedge fund managers have been appearing at exclusive litigation finance gatherings that were once the preserve of specialist funders such as Therium and Burford.

Those conferences were previously held up as evidence of a booming industry. Yet those days are gone. Bloomberg reported in December that attendees at a litigation finance conference hosted by law firm Brown Rudnick in October openly acknowledged they were losing money and facing investor withdrawals. Now, litigation funding conferences look more like auction houses where the pounds of flesh from the TPLF carcass are being sold off. And not at premium prices.

The bargains are apparently plentiful. Insurance Journal reported that many legal assets are changing hands for as little as 10 cents on the dollar. Suddenly, even the stinking assets of TPLF can look attractive despite the steep risks and frequent failures that have plagued the sector.

“Many legal assets are changing hands for as little as 10 cents on the dollar.”

That sheds some light on Therium's quiet transfer of its entire portfolio to Fortress Investment, including the controversial Sulu arbitration case. The details were scarce, but the more recent sale of cases to hedge funds at discounts offers some retrospective insight. Observers now ask, just how cheaply did Therium part with its cases as it sought to unload those odious assets?

The handover was conducted largely out of public view and finalized on June 11, 2025. What is known is that Therium's widely reported layoffs came first, offering perhaps the clearest indication of the firm's financial troubles after a series of unsuccessful cases. Following the transfer, Therium abandoned direct case funding and reinvented itself as a litigation finance advisor. The obvious question is: advisor to what, exactly?

“Just how cheaply did Therium part with its cases as it sought to unload those odious assets?”

The answer appears straightforward. Therium will no longer risk its own raised capital. Instead, it will advise others in the area where the firm lost so much money. The shift mirrors the broader retreat underway in TPLF, with Therium now acting as a middleman connecting claimants and law firms with hedge funds looking to grow their legal portfolios, and hedge funds with claimants seeking financing.

Insurance Journal also reported experts suggesting hedge funds have relatively little to fear because insurance may cover much of their exposure. That prospect is fueling concerns that TPLF could be contributing to rising costs throughout the insurance market. Critics argue that increased demand for litigation-related coverage may ripple through the system, pushing up insurance costs not only for funders but for businesses more broadly.

The industry's recent record has done little to reassure skeptics. Burford and Therium built their reputations on high-risk, high-reward wagers. Burford backed an $18 billion lawsuit involving Argentine energy company YPF, while Therium supported the $15 billion Sulu claim against Malaysia and an $18 billion case against the Spanish government. These disputes dragged on for years and ultimately ended in major setbacks.

The fallout has been painful, including Therium’s exit from the business of directly funding cases, and Burford's stock price falling to nearly half its previous value following its defeat in the YPF litigation.

Yet hedge funds may prove to be a very different breed. Firms such as Fortress are vastly larger, with investments spread across numerous sectors and asset classes. They possess the financial strength to sustain lengthy legal battles that could further increase the costs associated with litigation and business operations.

For these firms, however, legal claims may be just another line item in sprawling portfolios. Whether that detachment from the cases themselves leads to a greater willingness to abandon weak claims—or instead encourages the relentless pursuit of profit regardless of the legal merits—remains an open question.

REFERENCES

Bloomberg Law. (2025, April 22). Litigation funder Therium conducts layoffs amid upcoming shift. https://news.bloomberglaw.com/

Burford Capital. (2026, March 30). Burford Capital further statement on YPF appeal decision. https://investors.burfordcapital.com

Business Wire. (2026, June 3). Rocade Capital accelerates market leadership in legal finance with strategic acquisition of Law Finance Group. https://www.businesswire.com

Dickerson, C. (2026, January 21). Report: Third-party litigation funding affects affordability. Florida Justice Reform Institute. https://www.fljustice.org

Hyde, J. (2025, April 23). Jobs lost as high-profile lit funder restructures. The Law Gazette. https://www.lawgazette.co.uk/

KnowSulu. (2025, November 12). Sulu claimants’ desperate $18 billion claim against Spain thrown out. https://know-sulu.ph

Legal Funding Journal. (2025, June 11). Therium taps Fortress to manage caseload amid restructuring. https://legalfundingjournal.com/

Recamara, J. (2026, May 13). Insurers warn legal system abuse is adding to US cost-of-living squeeze. Insurance Business America. https://www.insurancebusinessmag.com

Shaw, W., Clark, E., & Naik, G. (2026, May 11). Hedge funds make their move as litigation finance assets slump. Insurance Journal. https://www.insurancejournal.com

The Lawyer. (2025, June 10). Therium hands off case portfolio to Fortress in major shift. The Lawyer. https://www.thelawyer.com

Therium. (n.d.). Therium Capital Advisors. Therium. https://www.therium.com

Therium. (2025, October 6). Therium Capital Advisors launched to provide litigation finance advisory services. Therium (News, Insights & Events). https://www.therium.com

U.S. Chamber of Commerce Institute for Legal Reform. (2022, November). ILR Briefly: A new threat: The national security risk of third-party litigation funding. Retrieved from https://instituteforlegalreform.com