If you are an attorney looking to pay for high litigation costs or a plaintiff who needs to pay bills, then you understand that without the cash flow to pursue wealthy corporate defendants, you could end up settling for less than a claim’s fair value.
These defendants are aware that lengthy, protracted litigation can drain plaintiffs financially until they either accept a low settlement offer or drop the claim altogether.
Only recently have attorneys been able to secure funding themselves and for plaintiffs to assist them in seeing a case through. Unfortunately, traditional lending institutions do not see potential legal awards as assets and thus do not provide lawsuit loans. This leaves a void for some funds which are inadequately capitalized to dabble into lawsuit funding. Ultimately, traditional finance lenders cannot offer long-term financing to bring a case to its proper conclusion.
