Litigation finance definitions

A brief list of definitions

Litigation Finance -- the practice of a third party funding litigation in exchange for a cut of any proceeds that result from the lawsuit. Litigation finance typically refers specifically to commercial cases. (also known as legal financing, pre-judgment financing, legal finance). Litigation finance arrangements increase the value of the underlying asset.

Lawsuit Funding -- the practice of a third party funding the litigation in exchange for a cut of any proceeds that result from the lawsuit. Lawsuit funding typically refers specifically to personal injury cases and cases involving an individual (also known as settlement funding, lawsuit financing, pre-judgment funding, personal injury funding)

Litigation Funder -- a company which funds lawsuits on behalf of plaintiffs in exchange for a cut of the recovery

Legalist -- a litigation financier which funds lawsuits across the US, specializing in small business lawsuits and lawsuits involving individuals

Litigation Financing Agreement -- A contract between a litigation funder and a litigant outlining the terms of the funding arrangement

Litigation Funding Broker -- A broker who acts as a middleman between a litigation funder and a litigant. Legalist advises against using litigation funding brokers as they increase the costs of financing and often slow down the process by which a litigant is able to receive funding.