CHICAGO (Legal Newsline) – A litigation funder says it wants its money from a company that it loaned millions of dollars to.
HASelect-FTM Medical Receivables Litigation Finance Fund sued Infinity Capital Management on July 22 in Chicago federal court, alleging Infinity has failed to repay more than $14 million.
HASelect says it gave Capital more than $10 million to purchase receivables from medical providers that arose from personal injury claims.
A hypothetical used in the complaint is a car accident case in which the patient racks up medical bills that the other driver’s insurer refuses to pay.
Infinity would buy the receivables at a discount, allowing the patient to receive medical treatment and for Capital to earn a profit when the final payment is complete after litigation.
Infinity admitted to a financial downturn that hampered its ability to pay back the loan, the lawsuit says, and refused to let HASelect to inspect its books. It also took up a new business partnership with another lender, in violation of the HASelect agreement, the suit says.
“As a so-called sub-advisor to other fund(s), Borrower has engaged in a new business venture that undermines its obligations to the lender…” the suit says.
HASelect says it has reason to believe Infinity has “double booked the claims used to secure Lender’s loans with those related to this other fund, and may also have paid collections from claims securing Lender’s loans to said other fund.”
HASelect seeks more than $3 million in interest for a total of $14,126,860.