Ferrum Capital Lawsuit 2021 Access

Hightower refused to pay. And here is where the lawsuit gets spicy.

The remains a seminal case in the alternative finance and legal funding sector. While the confidential settlement prevented a definitive appellate ruling on the usury versus investment question, the case produced several concrete takeaways: ferrum capital lawsuit 2021

Because the case settled, we never got a judicial ruling on whether Hightower actually sabotaged its own merger. But the threat of that discovery—emails, texts, board meeting minutes—likely pushed both sides to the table. Hightower refused to pay

Post-2021, investors realized that massive breakup fees create perverse incentives. Why work to close a hard deal when you can collect $5 million for its failure? Many term sheets now cap breakup fees at actual expenses, not fixed bonuses. not fixed bonuses.