July 17, 2018 Articles

Disclosure of Third-Party Litigation Funding Arrangements in Class Action Litigation

There appears to be growing support for either court-imposed or legislative rules requiring disclosure of litigation funding agreements in class actions.

By Audra J. Soloway

In recent years, there has been an increase in the use of third-party litigation funding (TPLF). TPLF is the payment of a client’s legal expenses by an advance of funds from a third party, repayment of which is often (but not always) subject to the outcome of the financed litigation. According to a 2017 survey of litigation finance conducted by TPLF company Burford Capital, the number of U.S. law firms that reported having made use of TPLF grew from 7 percent to 36 percent between 2013 and 2017.

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