Why Third-Party Lawsuit Funding Drives Up Costs for Everyone

Third-party litigation financing allows outside investors to fund court cases in exchange for a percentage of the final settlement or verdict. This hidden funding often prolongs legal battles, as investors push for higher returns rather than fair resolutions. Consequently, the resulting legal expenses drive up insurance rates and the everyday cost of goods for consumers. While Louisiana's recent attempt to enforce full disclosure stalled, states like Ohio and North Carolina are leading the way in regulating or banning these secret financial arrangements.