You are the CEO of a thriving technology company. Your
chief legal officer informs you that a well-heeled vender has
stolen components of the intellectual property that is your
company's lifeblood. However, litigation is expensive
and the thief is prepared to engage in a costly war of attrition
intended to exhaust and overwhelm your business and the
company's resources are tied up in R&D. What can be
done? Litigation finance, sometimes called litigation
funding, may be the answer.
What is Litigation Finance?
At a basic level, litigation finance is when a third party,
unrelated to the lawsuit, provides money to a plaintiff or claimant
to further that party's objective in the legal claim for a
financial reward on a non-recourse basis. That is, if the plaintiff
or claimant loses the case, nothing is owed to the litigation
funder. The litigation funder receives a portion of any
financial recovery from the underlying lawsuit. It's a
no-win-no-fee arrangement. The
