Litigators and litigants are increasingly and understandably attracted to new financing tools that enable them to share or offload risk, especially when pursuing or responding to matters where costs and risks are especially high—as in class actions. Legal finance—also known as litigation finance, litigation funding or third-party funding—is capital that is extended to a law firm or a litigant to cover some or all the costs associated with pursuing commercial matters. Legal finance is unlike many traditional forms of financing because it is non-recourse, meaning that law firms and litigants need not repay the legal financier if they lose the case. Read More
