Platinum Partners’ Lesson on the Dangers of Betting on Lawsuits

The New York hedge fund firm recovered $70 million in losses from a fraudulent scheme connected to the fast-growing business of funding legal proceedings. Now its managers are telling others to tread with caution in this niche market.

Platinum Partners president Uri Landesman

It’s a lawsuit wrapped in a lawsuit, a twist on a strategy that has become fairly widespread among hedge funds.

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