Hedge funds scoring by investing in lawsuits

Hedge funds essentially betting on large lawsuits is a growing, and worrying to many, trend, Bloomberg reports. The practice involves investors financing lawsuits — anything from contract disputes to class actions. The largest player, Burford Capital, reported that its revenue increased 35 percent and operating profit 43 percent last year. The fund has made 32 investments that have generated $209 million in gross recoveries and $78 million net of invested capital, according to Bloomberg. Corporate…