Third Party Litigation Funding: Outside Investors Fund Litigation for a Piece of the Pie


Third party companies are opening their checkbooks to fund lawsuits purely as an investment? Yes. Third Party Litigation Funding has crossed over the pond.

Attorneys in the United States appear to be following the trend set by litigators in Great Britain and Australia with Third-Party Litigation Funding. Seems there are a couple of companies already offering to finance American business lawsuits in exchange for a cut in the settlement proceeds or judicial award. (They also share the risk of loss if their side loses the case.)

It's reasonable to think that there will be other financiers entering the fray. After all, Great Britain has been testing the waters on this lawsuit funding investment option for several years now (albeit not without controversy).

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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