U.S. District Court, S.D.N.Y.; Second Circuit · US (NY) · 2018-24 · Resolved (settlements/judgments)
Citation/Docket: 332 F. Supp. 3d 729 (S.D.N.Y. 2018); later 2d Cir. proceedings
Posture: Federal/state regulators vs. funder
Funder(s) involved: RD Legal Funding
Regulators alleged RD Legal's advances to NFL concussion class members and 9/11 first responders were deceptive, disguised usurious loans; the case also became a vehicle for the CFPB constitutionality fight.
Advances recharacterized as loans; claims largely sustained after years of appellate detours over CFPB structure.
Regulatory recharacterization risk is highest where funded claimants are sympathetic populations with near-certain recoveries; assignments of settlement proceeds may also be void under anti-assignment rules.
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Compiled from public sources (court filings, published opinions, and secondary reporting) as part of the Institute's Phase 1 Dispute Library research. This is educational material, not legal advice; case citations should be independently verified before relied upon.