⚖️What is litigation finance?

When a third party supports the plaintiff financially for a share of the profit, we call this litigation finance. It is usually done for the cases in which the plaintiff is claiming a good amount of money from an institution. Basically, it is investing in someone’s lawsuit to earn profit through it.

It is known as one of the most high-risk investments as the claimant needs to win the case. If he loses, the investor might lose all his money.