Article · Litigation
Somebody Else Is Paying for This Lawsuit: How Litigation Finance Actually Works
26 U.S.C. § 104
- Type
- Article
- Jurisdiction
- National
- Date
- 2026-01-27
- Topic
- Litigation
Money has entered civil litigation from outside the case, and it has changed how cases are financed, valued, and settled. This article explains the three distinct markets that get called litigation finance and why conflating them causes confusion. It covers the doctrines that used to prohibit outside funding and what remains of them. It covers the disclosure fight over whether the other side gets to know who is paying. It then turns to structured settlements, the factoring industry that buys them, and the court approval requirement that stands between a payee and a very bad deal.
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