In a world where it seems that just about everything is for sale these days, is it any wonder that there’s a burgeoning market for investment in lawsuits?
The practice, known as “third-party litigation funding” is a growing concern for insurers and other businesses, as well as state lawmakers.
TPLF Potentially $5B Industry in America
Third-party litigation funding, or TPLF for short, is exactly what it sounds like: parties unrelated to a lawsuit (usually hedge funds) investing in a plaintiff’s case in exchange for a cut of the settlement or judgement.
TPLF started in Australia in the 1990s and has since spread worldwide. The size of the industry in the United States is uncertain because the practice is unregulated here—and highly secretive.
Read the rest of this story at State Net Capitol Journal. Originally published Feb. 21, 2024; used with permission.