In an advisory ethics opinion the New York State Bar Association has says that RPC 1.8. bars a lawyer with a substantial interest in a litigation finance company from representing a client whose litigation is financed by that company. This seems right to me. For access to justice reasons we allow a lawyer to have a stake in the outcome of litigation. But a significant ownership interest in the financier adds another layer to what is already an inherently conflicted representation. Read the full opinion here.
Source: OTHERWISE: Lawyer investor in litigation funding in conflict with client it finances – NY State Bar Assocation