Litigation Funder Bankrolls Snapchat Whistle-Blower Suit

By Gayle Cinquegrani, Bloomberg BNA

A federal whistle-blower lawsuit filed May 16 against Snap Inc. by a former employee is being financed by Pravati Capital in what may be the first case where the role of a litigation funding company is acknowledged publicly.

“I think we’re the first publicly announced portfolio litigation funding deal,” John Pierce, a Los Angeles lawyer who represents whistleblower Anthony Pompliano, told Bloomberg BNA May 16.

The deal with Pravati Capital involves the entire portfolio of contingency fee cases that Pierce’s firm, Pierce Sergenian, is handling, he said. “That allows an elite start-up firm like us ...