LItigation Finance

In the most basic sense, litigation finance is when a third party funder provides capital for a law firm or plaintiff in exchange for an investment return of its capital as cases resolve.

Consumer litigation is typically focused on individual litigation matters, including personal injury, premises liability, mass tort, class action. Whereas commercial litigation is when the plaintiff is corporate entity. 

Litigation finance is available for commercial plaintiffs in exchange for a portion of the recovery.  Funding is available to cover the attorney fees, case costs, and other expenses that may arise. The funder will share in any potential recovery from the litigation. 

Funders typically prefer breach of contract, patent infringement and bankruptcy claims.

Law firm funding helps to provide working capital for firms, backed by the strength of its practice and cases. Loans are paid as cash flows from case resolutions come in, allowing the firms to use the loan to cover working capital, case expenses and marketing to continue growing the firm.