News
January 27, 2020

Selling More Lawsuits, Buying More Trouble: Third Party Litigation Funding A Decade Later

When ILR documented the early development of third party litigation funding (TPLF) in the U.S., the industry barely existed. Now, according to a recent survey, U.S. funders alone have over $9.5 billion under management. ILR’s research looks at how exactly this explosive growth has happened, how the industry is fueling abusive litigation, how the few TPLF agreements that have been made public reveal deep ethical issues with the practice, and how lawmakers and rule makers can approach TPLF reform.

Among the solutions documented in the paper are proposals that:

  • TPLF agreements must be disclosed to all parties in litigation, to minimize conflicts of interest and ensure plaintiffs retain control of their case
  • Fee-sharing agreements between lawyers and non-lawyers should be banned (as several bar associations have already done) in order to preserve the independent professional judgment of attorneys
  • TPLF should not be permitted in the class action context, because funding creates a potential obstacle to class counsel and named plaintiffs satisfying their fiduciary duties to the class
News ICYMI: Australian Government Says Greater Oversight Of Litigation Funding Industry Needed International Initiatives News In The News Today- January 6, 2021 Class Action Litigation, Data Privacy Letters, Comments, Petitions Letter Urges Georgia Bar To Reject Proposed Ethics Rules Changes Other Issues News In The News Today- January 5, 2021 International Initiatives News Lawsuit Complains Hawaiian Rolls Aren't Made In Hawaii Class Action Litigation
We Use Cookies to Make your Experience Better

What do we use cookies for?

We use cookies and similar technologies to recognize your repeat visits and preferences, as well as to measure the effectiveness of campaigns and analyze traffic. To learn more about cookies, including how to disable them, view our Cookie Policy. By clicking "I Accept" or "X" on this banner, or using our site, you consent to the use of cookies unless you have disabled them.