Litigation costs are on the rise across the U.S.
These increased costs have an impact on federal, state and local governments - and on insurance carriers and policyholders.
One of the key drivers of increasing litigation costs is the rapid rise in popularity of third-party litigation funding (TPLF), a practice defined by the U.S. government as 'an arrangement in which a funder who is not a party to the lawsuit agrees to help fund it.'
These arrangements often keep the identity of the funder a secret from the rest of the parties involved with the lawsuit, meaning the hidden entities behind third-party litigation funding could be anyone, anywhere - including bad actors with malicious agendas.
Foreign-sourced money being washed through TPLF schemes is a growing concern, especially with the privacy privileges granted to the funders.
And even without the fear of a shadowy quasi-government figure or political group with ulterior motives providing funding, the rules for third-party litigation funding lack transparency.
