Third-party litigation funding (“TPLF”) is a budding industry reshaping commercial litigation in the United States and abroad. Domestically, high-stakes antitrust, securities, intellectual property, business-contract, and other large-damages lawsuits almost certainly mean a protracted and costly litigation process, often to the point where the risk cannot be justified. This situation deters would-be plaintiffs from the commitment and prevents them from realizing the upside. While the opportunity cost can be substantial, many businesses can neither endure the uncertainty nor the possible exposure.
TPLF enables plaintiffs to take on well-funded defendants who may contest the lawsuit with seemingly inexhaustible resources. In turn, plaintiffs incur additional, unplanned expenses that strain corporate budgets. Ultimately, the only feasible way to litigate such a matter is to hedge the risk. Partnering with a litigation funder to shift the risk, namely the burden of legal fees and expenses, allows corporate plaintiffs to focus capital on core business avenues,... Continue reading