Third-Party Litigation Funding
Outside capital advanced against a share of litigation proceeds.
Funders increasingly finance the intake, vetting, and fee costs of mass arbitration campaigns. The structural tension is well identified but unresolved: a funder's return depends on aggregate portfolio recovery, while counsel owe duties to each individual claimant, and no uniform disclosure regime exists across arbitral proceedings.
See also
- Claimant SolicitationDigital recruitment of claimants at scale through targeted advertising and intake automation.
- Adequacy of RepresentationThe requirement that the representative and counsel will fairly protect absent members' interests.
- Contingency FeeCounsel's fee taken as a percentage of recovery, payable only on success.
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