Litigation funding for class action cases is a type of financial support provided to a party involved in a class action lawsuit. In a class action lawsuit, a large group of people who have been harmed by the same action or practice by a defendant comes together to sue as a single plaintiff.
Litigation funding can provide the necessary financial resources for claimants to pursue a class action lawsuit, which can be complex and expensive. Funding providers typically evaluate the strength of the case and the likelihood of success before deciding whether to invest in the litigation.
If the class action lawsuit is successful, the funding provider receives a portion of the settlement or award. This allows claimants who may not have the financial resources to pursue the case on their own to access justice and compensation.
Class action litigation funding can also help to level the playing field between claimants and defendants. Defendants, particularly large corporations or institutions, may have significantly more financial resources to dedicate to legal fees and expenses. Funding can help to ensure that claimants are able to afford experienced and skilled legal representation.
Overall, litigation funding for class action cases can provide a means for claimants to access justice and compensation, even when they may not have the financial resources to pursue a case on their own.
After the Event (ATE Insurance)
In terms of how litigation funding works, all costs and legal fees associated with the claim will be paid
by the litigation funder.
If we win the case, the litigation funder will be entitled to recover the money it has spent on the case
(i.e., by paying for the legal fees, the ATE insurance premium, and the other disbursements such as
court fees), plus a premium, from the claim recoveries. If we lose the case (which is hopefully unlikely), the litigation funder loses all of the money it has spent on the claim and the claimants do not have to pay the litigation funder anything