Fortress Investment Group has become a major player in the lucrative yet controversial business of litigation funding. With a staggering $6.6 billion invested in legal assets, Fortress has backed some of the biggest mass tort cases in history, such as the Roundup cases against Bayer AG and talcum powder litigation against Johnson & Johnson. It also funds other litigation funders.
But Fortress’ success is not solely due to its deep pockets. The company’s meticulous attention to detail and aggressive pursuit of alleged infringers in court have made it a force to be reckoned with. In fact, some law firms have declined funding from Fortress due to the company’s intense monitoring of their bank accounts and cases.
As the world’s largest institutional investor in patents, Fortress has also earned a reputation as a thorn in the side of tech giants like Apple and Intel. Its patent litigation activities are conducted with the same level of intensity as its litigation funding, and the company is not afraid to take on powerful opponents.
Despite its success, litigation finance remains a lightly regulated industry that has faced criticism from some quarters. The US Chamber of Commerce has been a vocal opponent of the industry, viewing it as a source of frivolous lawsuits. Congress has attempted to regulate the industry several times, with one proposed bill that could have put Fortress out of the legal assets business.
In a recent interview, Fortress Managing Partner and Co-CIO Jack Neumark acknowledged the challenges of litigation finance but emphasized the company’s commitment to holding its partners accountable. “We see where funds go. If you do something you’re not supposed to do, we’re gonna be upset,” he said.
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