Manhattan attorney sued by a cash-advance company filed a lawsuit against New York Post, the newspaper that publicized the story in a biased way to benefit its business objectives, the lawsuit claims.
New York, NY -- (ReleaseWire) -- 02/19/2020 --Marina Trubitsky, an attorney of Trubitsky Law Firm in Manhattan, filed a lawsuit against New York Post and its correspondent for false accusations after the newspaper publicized the lawsuit that was brought up against her by a funding company. Trubitsky Law Firm provides legal services in all New York boroughs. The firm reportedly turns over a hundred cases yearly, primarily in personal injury space. The lawsuit was filed on the grounds that "the Defendants passed allegations as facts" and "frivolously added their own allegations" to the original lawsuit. Their article had a negative effect on the attorney and her business unjustly exposing her to public hatred and scaring clients. The lawsuit charges the newspaper with malice and seeks punitive damages.
Earlier, Trubitsky countersued the funding company and its employees for defamation. She believes the company's employees advanced cash to ineligible clients intending to extort it from her instead. "There are many issues with the funding company's claim", says Trubitsky's attorney who represents her in the case, - "The contracts were between the funding company and Trubitsky's clients. It is unclear how the company can demand money from Trubitsky." He adds, "By now many of the cases cited in the lawsuit are settled and money paid out. Trubitsky was personally punished when she tried to protect her clients from predatory practices of the funding company."
Legal funding companies, as they are known, are cash advance companies that provide quick cash to plaintiffs with pending lawsuits. These companies charge huge interest – 3-4% a month – which gets paid out of the proceeds of the lawsuit. When the lawsuit is over, the accumulated interest may easily reach 150%-250%. Usury laws prohibit charging annual interest in excess of 16% in the State of New York, but funding companies get around it by avoiding to present their contracts as loans.
"The benefits of legal funding to the public have been a subject of debate lately", says Jason Schwartz of Proforma Finance. "These companies don't require a license and are often run by people without financial or legal education - they don't understand how litigation works nor do they know how to manage a loan portfolio. Many of them don't even know the exact terms of their own contracts. When funders run into results of their own unprofessionalism, they start looking for ways to cancel the contracts, undo the loans and get their money back. That's why the average lifespan of a funding company is only 2.5 years."
Trubitsky's lawsuit claims The New York Post and its correspondent intentionally distorted information to create bigger public resonance. After Trubitsky countersued the funding company, the newspaper did not amend its article or supplement it to give the public a 360-degree view of the case.
New York Post declined to comment on Tuesday.
By Flux Media