lawsuit funding
We can be your financial lifeline while your case settles.
Get $500 to – $1,000,000
in your bank account within 48 hours once approved.As permitted by your state laws
Get $500 to – $1,000,000
What is litigation finance?
Litigation finance (also called litigation funding) is the practice where a third party unrelated to the lawsuit provides capital to a plaintiff involved in litigation in return for a portion of any financial recovery from the lawsuit.
Litigation finance unlocks the value of legal claims by providing capital to plaintiffs before their cases are resolved. This type of financing has existed for more than 20 years and is increasingly becoming a mainstream funding solution that helps equalize access to the legal system. Fortune 500 companies, major universities and businesses of all sizes have benefited from commercial litigation funding.
The capital provided by monetizing a legal claim may directly pay for some of the costs of litigation, including attorneys’ fees, expert witness fees and court expenses. Litigation finance may be used to fund working capital for companies involved in litigation or even help business owners pay for personal expenses.
Unequal access to the legal system
In much of the world, access to justice requires abundant capital because litigation is expensive. Many factors contribute to the cost of commercial litigation: attorney fees, research, depositions, interrogatories, motions, conferences, witness preparation, trials, subpoenas, appeals, as well as expenses associated with court fees, consultants, and investigations.
All too often litigants who seek justice are unable to pursue their claims due to the high costs associated with lawsuits. Many plaintiffs who have a compelling case will choose to defer or ultimately abandon legal recourse. A great imbalance of resources exists between average and wealthy litigants, creating impediments to judicial access and a distortion of legal outcomes for the undercapitalized.
Parties involved in commercial litigation finance
Generally, there are three principal participants in commercial litigation funding – plaintiffs, investors and attorneys.
PLAINTIFFS
Plaintiffs are individuals or companies involved in commercial lawsuits that need to fund litigation expenses, working capital or personal expenses. For more information about how LexShares benefits plaintiffs click here.
INVESTORS
Investing in legal claims creates a new asset class out of disputes, allowing investors to purchase portions of future proceeds from litigation for an upfront cash payment. LexShares’ model helps connect accredited investors with pre-vetted investment opportunities. For more information about how LexShares’ model enables investment in legal claims click here.
ATTORNEYS AND LAW FIRMS
Attorneys and law firms facilitate the case evaluation process by providing investors with information about claims. In most funding transactions, attorneys serve as custodians of funds for all of the lawsuit’s stakeholders and upon resolution distribute those funds to them. For information about how LexShares funding benefits attorneys click here. For information specific to the benefits LexShares offers to law firms, please click here.
Litigation finance offers a number of benefits
Litigation finance companies provide a number of important benefits to plaintiffs, attorneys, law firms and investors.
PLAINTIFFS
- Helps undercapitalized plaintiffs further meritorious cases by financing commercial litigation expenses
- Provides capital injections for already filed cases that experience funding constraints
- Unlocks liquidity for working capital
- Provides a cushion for personal expenses
- Allows companies to manage how litigation costs affect their balance sheets
- Enables greater access to top legal talent
ATTORNEYS AND LAW FIRMS
- Allows attorneys and law firms to accept cases from plaintiffs who otherwise could not afford their fees
- Provides capital for all litigation expenses, including expert witness fees
- Reduces the risk that clients will run out of money during litigation
- Enables attorneys and law firms to offer more flexible payment arrangements to prospective clients
- Increases plaintiffs’ effectiveness by providing funding for working capital and personal expenses
- Helps achieve recoveries that are more in line with case merits and damages
INVESTORS
- Access to new asset class
- Investments in legal claims are uncorrelated to capital markets
- Outsized historical returns compared with other alternative asset classes
- Moderate time to liquidity versus other alternative investments
Attorneys and litigation finance
Most states have issued bar ethics opinions that permit litigation finance transactions, provided attorneys fulfill certain disclosure requirements and avoid conflicts of interest. For example, attorneys and law firms are allowed to share information about cases with investors after receiving the client’s consent. Moreover, they are allowed to honor a client’s written assignment or lien for a portion of the proceeds from a recovery. The New York City Bar Association has recently recognized the growth of litigation funding and commented that it is a “valuable means for paying the costs of pursuing a legal claim.”
So far, more than 30 jurisdictions have issued ethics opinions relating to litigation finance. We have included commentary from several state bar groups below.
California BarIllinois BarLos Angeles County BarNew York City Bar
Non-recourse funding can help you cover legal expenses and working capital during protracted litigation.
“has always given our clients excellent service and support. Their professional and efficient attention to detail has assisted our clients in getting the funding they needed quickly while making the client feel that they are getting attentive and individualized care from people who really understand what they are going through.”
–California Trial Attorney
How do plaintiffs benefit from litigation funding?
Improve Outcomes
Achieve recoveries that are more fairly aligned with the case merits.
Unlock Liquidity
Monetize your claim to finance legal fees, working capital for your business, or even a cushion for personal expenses.
Reduce Risk
Mitigate out of pocket hourly fees and litigation expenses, shifting the risk of an adverse outcome.
Access Top Resources
Leverage greater financial flexibility to engage with the best legal resources available, including attorneys, experts and litigation support services.
Best in Industry Rates!
- 20% one-time origination fee
- 2.95% monthly usage fee – simple, NOT compounded
- 6-month minimum
That’s it. Pre-Settlement Benefits
- NO Hidden Fees
- NO Compounding Amounts
- NO Time Limit for Repayment
- NON-Recourse, if your case is lost, you don’t pay us back
