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What is litigation funding and how can it help my lawsuit?

If your company is involved in litigation in Florida, you may be worried about the costs involved with the lawsuit. Expenses relating to attorney fees, court reporters and document production can add up very quickly. That is why some companies have gotten into the business of litigation financing.

According to Financier Worldwide, investors looking to make a profit are increasingly turning to litigation as an investment vehicle. If someone thinks that your company has a good chance of winning your case and receiving a judgment in your favor, he or she may be willing to help pay for the associated costs in exchange for a percentage of any money you receive.

The practice is not without its critics. There is concern that if litigation financing becomes popular, the number of lawsuits being filed across the country will increase. Some in the legal field believe that when third party funding is used to pay for litigation, it should have to be disclosed to the court.

This type of investing has been going on in other countries for a while but is only beginning to gain steam in the United States. Betting on the outcome of a court case is much different than traditional forms of investing since the results are not connected to what is going on with the economy.

If you think there is a good chance that your lawsuit will be successful, third-party financing may be an option to explore, particularly if your opposition has deep pockets. This is provided as general information on this topic and should not be construed as legal advice.

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