Litigation Finance

Litigation finance refers to the process and system by which law firms and their plaintiffs can finance their litigation costs through a third party finance company.  

Law Firm Financing

Litigation funding offers a way to access the capital law firms need without the restrictions of conventional financing options.  Law firm financing involves leveraging a contingency fee portfolio for operational, marketing, and case expenses.  

 

Plaintiff Pre Settlement Funding

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There are five different stages that a litigation funder can get involved in a commercial case.
Litigation investments offer a risk-reward scenario: the risk rewards are the highest early in the legal process
when the case is in discovery. During the early stage of a case, the case has been defined and the parameters of the
case are in the process of being built.

Once a case in in litigation, the case is more developed and if it is dragging on, a plaintiff or law firm
may seek to monetize a portion of the potential case proceeds to pay for other expenses.

Once there is a Verdict and a potential appeal, the case risk is lowered the general risk-reward realtionship
of investing in the case shifts in favor of the investor. However, the risk is still binary. If the plaintiff loses,
investors lose too. These are non-recourse investments. If the plaintiff wins, it’s a matter of how much and
how long it will take for the funds to arrive. Once the settlment is final and the plaintiff prevails in appeal,
the risk shifts dramatically lower but there is still an active collection process that must be completed. Appeals
touch off another round of potential risks and investment. Once a settlement arrives, that is great news for the
plaintiff because it means investors are guaranteed a payout.

Litigation Finance for Plaintiffs and Law Firms

Litigation finance, also known as litigation funding, is where investors provide an early or late stage investment in a pending legal claim for a portion of the expected settlement proceeds.  Litigation funding often pertains to commercial claims and includes funding for law firms and plaintiffs.  We are an innovative financing partner and can provide industry leading rates and services for all types of commercial funding.  We have no size parameter restrictions and look at all claims that have a high probability of settlement. 

American Pride Legal Funding can offer litigation financing for mass tort portfolios as well as single event personal injury portfolios.  We offer financing from $250,000 to the high eight figures for the countries largest portfolios.  

 

For plaintiffs, we also offer the most innovative litigation finance solutions.  We offer funding for commercial cases of all sizes and types.  We offer commercial litigation finance, portfolio and complex financing, antitrust financing, intellectual property, and post-settlement advances.  

 

Litigation Funding and Case Evaluation

Cases are underwritten by our attorneys and our partners in four steps.  First, plaintiffs and attorneys submit an application and pertinent case documents for funding.  Next, our attorneys provide a preliminary review of the case and its legal merit.  After the pre-qualification analysis, there is more compliance and due diligence including interviews with counsel and an analysis of the economic terms of the potential deal.  Finally, approved cases are funded in short order.

Frequently Asked Questions: What is Litigation Finance?

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