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Title: Litigation Funding in U.S. Courts: Tracking the Money Behind the Headlines
When a civil case makes the evening news, coverage usually zeroes in on dramatic testimony or closing arguments. What rarely gets airtime is the financial engine that keeps the lawsuit running. In the past decade, private investors have poured billions of dollars into American litigation, turning legal claims into a standalone asset class. That surge has reshaped bargaining power, spurred new regulatory proposals, and raised pointed questions about transparency.How Outside Capital Enters a LawsuitAt its core, litigation funding is straightforward: a finance company advances cash to a plaintiff (or sometimes to a law firm) in exchange for a share of any recovery. Because repayment hinges entirely on winning or settling the case, the deal is non-recourse—if the suit fails, the funder eats the loss. Investors therefore evaluate a claim the way a venture-capital firm vets a start-up: strengths of evidence, potential damages, and the track record of opposing counsel all come under the microscope.A 2023 Government Accountability Office (GAO) report put hard numbers on the trend, estimating that funders active in the United States now manage roughly $15 billion—more than double the figure GAO recorded just four years earlier.Why the Cash Influx Matters for PlaintiffsStaying PowerDefendants with deep pockets often delay proceedings, hoping financial fatigue will push a claimant toward a steep discount. A funded plaintiff can pay experts, manage e-discovery costs, and wait out stalling tactics.Risk TransferBecause funding is tied to the outcome, it does not create traditional consumer debt. If the claim collapses, the plaintiff owes nothing—an arrangement federal watchdogs treat differently from credit products, though they still police deceptive marketing.Sharper...
This press release is issued by King Newswire