Lucian Pera is quoted in a Law360 article, "Pierce Bainbridge Funding Deal Raises Ethical Red Flags," which notes how Pierce Bainbridge founder John Pierce aimed to trade half of future returns from a selection of legal cases in exchange for cash upfront. Lucian and others discussed the ethics of the financing deal, noting its numerous unusual elements and ethical red flags.
"In general I don't bless deals like this because they do look like fee-sharing," said Lucian in the story.
According to Lucian, most funders and lawyers take pains to avoid agreements that appear to expressly agree to give a funder a straight cut of future fees, given that all jurisdictions have a rule against fee sharing.
"If I was reviewing this for a [lawyer] client, I'd have concerns" regarding a violation under the fee-sharing restrictions spelled out in Rule 5.4 of the American Bar Association's rules of professional conduct, Lucian added.