Definition of «litigation funding»

Litigation funding is a process where an individual or business seeking legal action can obtain financial support from a third-party investor to cover the costs associated with pursuing their case in court. This type of funding allows plaintiffs who may not have the resources to pay for legal fees and other expenses related to litigation, the opportunity to seek justice without worrying about the financial burden. In exchange for providing this support, the investor typically receives a portion of any potential settlement or judgment awarded in favor of the plaintiff. This arrangement is often referred to as "risk-sharing" and can provide an important resource for those seeking legal recourse, especially in cases involving complex or lengthy litigation.

Sentences with «litigation funding»

  • A panel of national and market leaders in litigation financing cover the ethics and economics of litigation funding in commercial litigation. (thenalfa.org)
  • This ruling increases the exposure of litigation funders in cases that don't succeed. (fundinglitigation.com)
  • In a troubling development, third party litigation funding companies are becoming increasingly involved in Canadian class action cases. (instituteforlegalreform.com)
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