WHAT IS LITIGATION FINANCE?
Litigation finance is the practice where a third party unrelated to the lawsuit provides capital to a plaintiff involved in litigation in return for a portion of any financial recovery from the lawsuit.
Litigation funding allows lawsuits to be decided on their merits, and not based on which party has deeper pockets or stronger appetite for protracted litigation. The emergence of litigation finance is probably the most important development in civil justice of our time.
OTHER NAMES
Litigation Finance, may also be known by any of the following names:
- Litigation Funding
- Legal Financing
- Dispute Financing
- Professional funding
- Settlement funding
- Third-party funding
- Third-party litigation funding (TPLF)
- Legal funding
- Arbitration Funding
- Lawsuit loans
- etc
BENEFITS
Litigation finance unlocks the value of legal claims by providing capital to plaintiffs before their cases are resolved. This type of financing has existed for more than 20 years in the United States and is increasingly becoming a mainstream solution that helps equalize access to the legal system.
Fortune 500 companies, major universities and businesses of all sizes have benefited from litigation funding in recent years.
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