LA Fires
May 22, 2025
Private equity's role in fire litigation could drive up costs, wildfire attorneys warn
Hedge funds buying wildfire subrogation claims from insurers raise concerns about conflicting interests with attorneys, potentially impacting settlements and fairness for victims in Los Angeles County's Eaton and Palisades fires.
Hedge funds are reportedly buying subrogation claims stemming from the wildfires that tore through Los Angeles County in January. The deals give insurance companies cash and remove the uncertainties of litigation. But they also put investors at the table with attorneys, where their interests could collide.
The problems could worsen, and drive up the cost of wildfire litigation, attorneys warn.
"They will want to reap on ROI," R. Rex Parris said of the hedge fund...
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