Litigation finance firms are rising in popularity with about a 15 percent jump in the percentage of companies that work with third-party litigation funders, finds a new study.
The Lake Whillans annual report surveys in-house attorneys at a wide-range of companies, including small companies and Fortune 200 and 500 companies. 41 percent of respondents said they have firsthand experience working with a litigation finance firm compared with 26 percent in 2018.
For this year, when it came to the strongest motivation for seeking litigation finance, the majority of in-house counsel respondents said hedge risk of litigation, with the majority of law firm partners saying lack of funds for legal fees.
As for how potential litigation funders were found, the majority of all respondents said referral, followed by legal industry media and internet search.