The Litigation Funding Industry.
The US litigation market is more than $200 billion, meaning the money spent by plaintiffs and defendants on litigation. This has created an opportunity for a new generation of investors who are investing into the high yield and short term ventures when verdicts or case settlements come in. Established financiers have expanded into the area of lawsuit loans, including loans to law firms and funding clients from among the biggest American companies. “Investors Put Up Millions of Dollars to Fund Lawsuits,” Wall Street Journal, April 7, 2013, Jennifer Smith.
The demand for alternative litigation funding continues to grow and hedge funds are entering the arena to finance mass-tort lawsuits and class actions. The capital available in the litigation funding market is estimated to be $1billion. This means there is a hugh gap between the estimated total litigation capital market and the need for funding. The market is global, the UK, US, Germany and Australia are particularly dominant jurisdictions, however the venue of the funding company does not dictate the type of case of lawsuit funding they undertake. Many UK funders, for example, will fund cases in the US litigation and arbitration markets — and vice versa for the US funders.
Litigation funding puts money behind contingent-fee lawyers and plaintiffs. In many ways litigation funding serves a real need. Contingent fee lawyers and their clients often need cash. “Lawsuit Funding Lures Investors. Plaintiffs & Lawyers” Forbes online, February 20, 2014, Robert W. Wood.
The Economist predicts litigation funding to be a high return growth business where investors that put up money to invest into a lawsuit in exchange for a share of the settlement. Economist, “Fat Returns for those who help companies take legal action,” April 6, 2014.
Lance Lawsuit Funding Takes It Place In the Litigation Funding Industry
Lance Lawsuit Funding provides cash for plaintiffs and a war chest for contingent-fee law firms. Lance Lawsuit Funding typically will fund tort and product liability cases, dangerous product cases, medical malpractice lawsuits and many other personal injury lawsuits. Sometimes plaintiffs with pending lawsuits have to wait years before their case is settled. Medical expenses, lost wages and daily living expenses create an overwhelming financial crisis to them. Many accident victims are unable to work and risk losing everything. Lance Lawsuit Funding provides cash investments into their cases which is risk-free. We take the risk along with the plaintiffs — if there is no settlement then the money is not paid back.
For contingent-fee law firms who need a war chest for a specific case or litigation we will invest in their case. The principle comes due when there is a settlement or verdict. Lance Lawsuit Funding is a passive investor into the lawsuit. We do not get involved in any strategy decision making — that is left the lawyer and client.
The Types of Case Lance Lawsuit Funding Invests In.
We provide cash advances and case investment in all types of personal injury lawsuits. Most recently we invested in plaintiff lawsuits against vaginal mesh makers and pharmaceutical companies, including American Medical Systems Holdings. We also invest into medical malpractice lawsuits throughout the United States. Some other lawsuits we typically provide funding to are all types of personal injury cases, motor vehicle accidents, spinal injury cases, physician error lawsuits, slip and fall cases and many others.
How Lawsuit Funding Works.
Step 1: Apply. A plaintiff with a pending lawsuit who is working with a lawyer will contact Lance Lawsuit funding. He/She will be asked to tell us a little about the case or claim so that we can process it. We’ll ask questions, such as “How much money are you requesting as a cash advance?” and “What is your attorney’s contact information?”
Step 2: Review. We will take it from there by contacting your attorney for relevant case documents for our underwriters to review and discuss your case briefly with your attorney. We will let the plaintiff know if they are approved as soon as possible, normally within 48 hours of submitting your application.
Step 3: Approval. We send you and your attorney a funding agreement for you to sign. Simply sign and return the agreement. Once we receive the form, we will distribute your funds. It is that simple.
For more information about lawsuit funding visit the website of www.Lancelawsuitfunding.com