Litigation Funding on Rise in Big Cases, Panel Says

Third-party litigation funding is on the upswing, particularly in big civil cases. Law firms or their clients can arrange for millions of dollars in funding for legal fees and expenses to help weather litigation that could be protracted but ultimately produces large recoveries.

However, most lawyers haven’t yet used litigation funding, so they’re wondering about its legality and propriety, and how the funding process works.

Also, insurance companies are concerned that defense costs may go up and cases may be harder to settle when funders are secretly injecting money into large cases and might be pulling the strings.

These issues ...