Four Big Questions for the Industry in 2026: Litigation Finance

Happy New Year!

2025 was a big year for the litigation finance industry — and this year is set to be even more significant. We’re talking potential new legislation, court cases, and more. I wrote about four big questions for funders going into 2026:

Is federal legislation in the offing? The Chamber of Commerce and others who want more regulation are getting closer to victory. But with Congress facing a packed schedule and contentious mid-term elections, where will this legislation rank on lawmakers’ laundry list of priorities?

What’s next for MSOs? Management service organizations took off last year, and there’s no reason to suspect excitement about these trendy investment vehicles will slow down in 2026.

Will Burford get its money from Argentina? This case has dragged on for years and is unlikely to have a quick resolution. But one thing’s for certain: Wall Street and legal analysts will be watching every twist and turn.

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Will insurers keep raining on funders’ parade? Insurance carriers came out in full force against litigation funding this year. With more legislation in the pipeline, the insurance industry may continue to lobby for regulation.

Speaking of insurance, my colleague Olivia Alafriz wrote an excellent article about how commercial liability insurers will soon have the option to require policyholders to disclose litigation finance agreements.

The Insurance Services Office — a unit of Verisk Analytics Inc. that issues widely used standard policy forms — released optional language that would require policyholders to disclose funding agreements involving them or their attorneys in claims disputes with carriers.

Seems like insurers are finding creative ways to figure out who’s funding cases.

What I’m Reading

Litigation funder LexShares announced that it resolved a lawsuit with its former CEO. Cayse Llorens sued the company last year, alleging he was treated disparately by the board and eventually terminated because of his race.

The chief economist and executive vice president of the American Council for Capital Formation wrote an opinion piece in The Hillabout the rise of using litigation to implement policies. He wrote that estimates suggest the global litigation funding market could grow to nearly $50 billion by the mid-2030s.

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Commentary & Opinion

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Correction

Last week’s edition did not include the link for the story “Insurers’ Fight With Litigation Funders Hits Liability Policies” referenced in the subject line. That story is linked above.