Legal term

Litigation Funding

Updated Jul 19, 20262 sources

In a sentence

Outside capital invested in lawsuits or law firms in exchange for a share of recoveries. A multi-billion-dollar industry — including roughly $2 billion committed to Camp Lejeune firms alone — that most claimants never see.

Mass-tort case acquisition runs on this money: firms borrow at rates commonly 15–40% annually to fund the advertising that finds claimants, then repay from fees when cases resolve.

Funding is non-recourse to you — the funder is paid from attorney fees, not your recovery, in most structures. But funding costs shape firm behavior: long delays compound borrowing costs, which is one reason resolution timelines matter to everyone in the chain.

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