Class Action Funding For Litigation & Lawsuits
Get StartedWhat You Need to Know About Class Action Financing
When you and a group of people have been wronged by a corporation or organization, filing a class action lawsuit can be a powerful way to seek justice. The only issue, however, is that these types of lawsuits can take years to settle. This is where class action financing comes in. Simply put, class action financing provides the funds necessary to cover the costs of a lawsuit, so that plaintiffs can focus on winning their case instead of worrying about financial stress.
How Class Action Financing Works
Class action financing works by providing plaintiffs with the necessary funds to cover legal expenses, such as filing fees, expert witness fees, and attorneys' fees. This allows plaintiffs to pursue their case without having to pay out of pocket for these expenses. In exchange for this financial support, the financing company receives a percentage of the settlement or award if the case is successful.
The Benefits of Class Action Financing
One of the biggest benefits of class action financing is that it allows plaintiffs to pursue their case without any financial burden. This is particularly important for individuals who may not have the resources to cover the costs of a lawsuit on their own. Additionally, class action financing can help level the playing field between plaintiffs and large corporations, who may have significant financial resources to fight a case.
The Drawbacks of Class Action Financing
While class action financing can be a helpful tool for plaintiffs, it's important to keep in mind that it comes with certain drawbacks. For example, the financing company will only provide funds if they believe the case is likely to be successful. This means that if they don't believe in the case, they won't provide funding. Additionally, the percentage of the settlement or award that the financing company receives can be relatively high.
How to Choose a Class Action Financing Company
When selecting a class action financing company, it’s important to do your research. Look for a company with experience in the type of case you’re pursuing, as well as a track record of success. In addition, pay close attention to the terms of the financing agreement. Make sure you understand the percentage of the settlement or award that the financing company will receive, as well as any fees associated with the agreement. Finally, choose a company that is transparent about their process and willing to answer any questions you may have.
Litigation Financing FAQ
Answers to some of our most commonly asked questions.
Typically, anyone who is a member of a class action lawsuit and has a legitimate claim is eligible for class action financing.
The cost of class action financing varies depending on the specific financing company and terms of the agreement. Generally, financing companies receive a percentage of the settlement or award if the case is successful.
The amount of time it takes to receive class action financing can vary depending on the financing company and the specifics of the case.
Yes, you can still pursue a lawsuit without class action financing. It's important to keep in mind, however, that you may need to cover legal expenses out of pocket.
No, class action financing is not considered a loan. Instead, it's a type of funding that is contingent on the success of the case.
If the case is unsuccessful, the financing company typically does not receive any repayment for the funds they provided.
