Litigation funding is a multibillion-dollar industry where investors fund lawsuits, providing financial support to individuals who may not have the resources to sue. This industry has little oversight and is rapidly growing. Litigation funders take on the risk of financing lawsuits, with the potential for high returns if the lawsuit is successful. However, there is a lack of transparency in this industry, and there are concerns about the ethics and potential for undue influence on clients. Big corporations and individuals alike are investing in litigation funding, and there is a need for regulation to ensure fair practices and transparency in this industry.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Litigation funding is a multibillion-dollar industry | Increasing investment in lawsuits | More regulations and oversight | Desire for justice and financial gain |
| Burford Capital funds litigants | Leveling the playing field | More businesses seeking funding | High cost of litigation |
| Litigation funders take high percentages | Varying profit percentages | More transparency and regulations | High risks and potential rewards |
| Personal injury cases funded by litigation firms | Access to justice for individuals | More regulation and oversight | Expensive legal processes |