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Litigation funding is the process where a third-party investor—who has no direct involvement in the case—agrees to pay all or part of the costs. In exchange, the investor receives a percentage of the final settlement or judgment only if the case wins.
The key characteristic is that it is non-recourse: if the case is lost, the investor loses their money, and the claimant owes them nothing. The funder absorbs the risk so the claimant can pursue justice.
The Two Faces of Litigation Funding
The Two Faces of Litigation Funding
Commercial Litigation Funding
Commercial Litigation Funding
Scenario: A person, a small business or group has a legitimate legal claim against a giant corporation, but they simply cannot afford the millions of dollars required for lawyers, court fees, and expert witnesses over several years.
Outcome: The Commercial Litigation Funding team advances funds to cover litigation fees and costs in return for a portion of the case settlement. If the case is lost, this non-recourse funding means the legal team does not repay the fees and costs incurred during the case. It delivers Justice Equity for our society, where all are judged by their merits, rather than the size of their bank accounts
Learn more about Commercial Litigation Funding
Pre-Settlement Funding
Pre-Settlement Funding
Scenario: A cyclist hit by a car faces years of litigation. Pre-settlement funding provides immediate cash for medical bills and living expenses while they wait for their insurance compensation to settle.
Outcome: Pre-Settlement Funding provides injured people with cash quickly in return for a portion of their case settlement. If the case is lost, this non-recourse funding means the injured person does not repay the funds. This allows the injured person to continue their life as normally as possible during the case.
Learn more about Pre-Settlement Funding
To learn more about or get involved with our LexYield Litigation Funding Platform, please contact us.
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