Litigation Finance Expansion

Third-party funding of lawsuits—once champerty, now mainstream—grows into multi-billion dollar asset class. Funders provide capital for legal fees in exchange of case outcome shares, enabling claims by resource-constrained plaintiffs. Critics warn of funder control over litigation strategy and settlement decisions; defenders cite access to justice. Regulation varies dramatically—some jurisdictions require disclosure, others prohibit the practice entirely. The industry is consolidating as institutional investors seek uncorrelated returns in legal claim portfolios.