ANALYSIS: Trust in Litigation Finance Comes With Experience

There are stark differences in how legal professionals perceive litigation finance’s ethical reputation and whether they believe the practice enables frivolous lawsuits. Those differences, according to results from Bloomberg Law’s 2020 Litigation Finance Survey, all come down to their experience with the industry.

The practice of litigation funding, in which a third-party funder provides financing in return for a share of the case proceeds, has had a mixed reputation during its growth in recent years. In its early days, the practice was often regarded with suspicion, as lawyers worried about possible violations of client confidentiality or ethics rules against fee-splitting. ...