Litigation Finance 101

Introduction to Litigation Finance

Litigation Finance is a rapidly growing form of specialty finance used by companies and law firms involved in commercial litigation. At its core, litigation finance is the practice of providing non-recourse capital to plaintiffs’ and plaintiffs’ attorneys to fund and monetize pending litigation.

The market for litigation finance is growing

Fifteen million civil cases are filed in the United States every year, and nearly 90 percent of U.S. corporations are engaged in litigation. The US legal market is estimated to have a market cap of over $200 billion, and litigation finance has just begun to pierce the surface. Since the litigation finance industry launched in the United States just a decade ago, the industry has grown to be more than $3 billion in assets under management.

Growing demand for litigation finance

Individuals and businesses of all sizes, leading law firms, and other organizations use litigation finance to mitigate risk, bridge cashflow gaps, and monetize uncertain outcomes. Working with litigation finance also allows plaintiffs and law firms the freedom to succeed in litigation against deep-pocketed defendants.

Algorithmic litigation finance underwriting

As an asset class, litigation finance is inefficient, immature and fragmented, and has not yet developed real technology for use in diligence and underwriting. Legalist leads the new wave of technologists using artificial intelligence and machine learning to streamline and underwrite litigation investments. Our proprietary technology has been recognized by leading publications as revolutionizing the way plaintiffs interact with the justice system.

We offer plaintiffs and attorneys money to cover legal bills and working capital at the lowest rates in the industry. Litigation finance can help your case succeed against defendants in cases with deeper pockets.

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