It's becoming more common for investors to chip in money for a lawsuit in exchange for a share of any payout a party wins, a practice known as litigation finance. But, as a recent Bloomberg Law investigation found, the identities of these litigation funders is often shrouded in mystery—and can have national security implications.

Bloomberg Law reporters Emily R. Siegel and John Holland learned about a Russian company with close ties to Vladimir Putin that financed the creditors in US and UK bankruptcy proceedings—even after several of its founders were sanctioned due to the Russian invasion of Ukraine.

Holland and Siegel join our podcast, On The Merits, to explain why attorneys say this was an attempt to use litigation finance to evade international sanctions, and whether it will lead to new rules on this practice. They also talk about how the Russian company came within hours of receiving a more than $6 million payout before a bankruptcy judge put a stop to it.

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