What is TPLF?

Third-party litigation funding (TPLF) occurs when a person or entity that is not a party to a legal case invests money with the goal of reaping large profits contingent upon the outcome of the case. 

TPLF occurs in many types of cases and comes in different forms, but the goal is always the same: netting a big financial return from the litigation of someone else’s claim. Indeed, third-party funders not only make money by buying an interest in a plaintiff’s recovery, but also may require repayment of their investment at predatory interest rates.

The Government Accountability Office reports that TPLF often involves the investment of millions of dollars per case. Westfleet, a third-party litigation funding advisor, has reported that the industry has grown by over $5.8 billion in the past four years, from $9.4 billion in 2019 to $15.2 billion in 2023 — data that surely demonstrates that more and more civil cases involve TPLF.

The litigation funding sector is a mature industry which has been extensively researched by legal scholars, investigative journalists, and members of the bench and bar. This research clearly demonstrates that the litigation funding industry is large, growing, and can cause substantial issues in courtrooms across America.

TPLF in the News

June 19, 2025

Tort Reform Might Ruin Litigation Financing

The Wall Street Journal

By Alex Dahl

May 8, 2025

Patent Lawyer Facing Sanctions for Sharing Secret Netflix Data

Bloomberg Law

By Michael Shapiro, Lauren Castle

May 8, 2025

To Be or Not to Be…Discoverable: Third-Party Litigation Funders

JD Supra

By Lee Brenner, Matthew Raber, Alicia Sharon

May 2, 2025

Third-Party Funding Transparency Is Key In Patent Suits  

Law360

By Bijal Vakil, Steven Reichel

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