As Mt Gox have filed for bankruptcy protection in Japan, it is important to realise that establishing liability against the company may not necessarily result in the recovery of damages, a position which will be carefully monitored. As in all litigation, there is a cost risk for a Claimant if that Claimant were to lose the litigation. However, we are examining options for Insurance policies that would protect Claimants from such costs.
Two things.
1. This is obvious, there are risks that you will not win your case. Why make your clients pay up front if you will purchase insurance against loosing? Wouldn't it make more sense to simply have the insurance company "front" the law firm the money for expenses and then repay the insurance company in the event that the case wins.
2. I am not sure about the ethics rules outside the United States, but my understanding is that in the US it is against ethics rules for attorney's to advertise for their services. This looks a lot like an advertisement.
3. (I know I only said two things but there is a 3rd point). Suing GOX would like lead to a lower recovery then would otherwise be received as GOX has limited assets that are less then total liabilities and would incur additional costs in dealing with a lawsuit.
This sounds very much like a scam to me.
