According to recent data, the current size of the litigation finance investment market is $17.5 billion. This value is expected to balloon to $67.2 billion by the end of 2037.
If today’s trends endure, the litigation finance market should see continued growth, expand to new markets, and provide more flexible cash disbursement options for plaintiffs and law firms who rely on this funding option.
As the future of litigation finance takes shape, industry leaders like Mustang Funding will continue to adapt and innovate to provide better and faster solutions for plaintiffs in personal injury claims and other legal cases—and the law firms that represent them.
Reasons for Exploding Industry Growth
The reasons lawsuit funding became prevalent in the first place are largely the reasons the market is forecast to grow in the coming years. Some of these markers of industry growth include:
- An increase in lawsuits: As the corporate landscape becomes more complex around the world, more people and businesses are likely to find themselves involved in litigation. For plaintiffs in personal injury lawsuits and other types of litigation, the opportunity for pre-settlement funding is often more attractive than the risk and delay of waiting for a legal outcome.
- Regulatory improvements: In the United States, the legalities of the pre-settlement funding industry are determined on a state-by-state basis. So far, courts have shown little interest in imposing strict disclosure requirements and other regulations that could curtail industry growth. Positive legislative changes may open this market up to more states, and broaden the scenarios in which it can apply.
- Economic uncertainty: Corporations with deep pockets can afford to wait years for legal results. Individual plaintiffs do not always have this luxury. In a future where economic uncertainty could expand, so might the need for solutions such as pre-settlement funding.
Good News for American Litigants
The positive outlook for the litigation finance industry is good news for plaintiffs throughout the U.S. The uncertainty and lengthy timelines of litigation place plaintiffs in a tough bind. No matter how promising a case is, the legal process often takes months—even years—to grind on, while plaintiffs must continue to pay their bills and live their lives, wondering when and even if that money will ever come.
Pre-settlement funding takes some of the worry and uncertainty out of the equation, giving you a cash disbursement based on the strength of your pending litigation in a matter of days.
Law Firms Will Also Benefit
The rosy outlook is also good news for law firms. Litigation exposes attorneys to expensive risks such as the cost of investigations, expert witnesses, and court fees. Law firm financing offloads this risk into the hands of a trusted financial partner in exchange for a percentage of the final result.
Leading the Way Into the Future of Litigation Finance
The positive outlook for the litigation finance industry is good news for plaintiffs and attorneys, who can both benefit from pre-settlement funding solutions.
As the market evolves, so will we, continuing to provide the friendly service and fast turnarounds that have made us a trusted industry leader across the U.S.
If you are a plaintiff in a pending lawsuit, or an attorney interested in working with a litigation finance firm, Mustang Funding is here for you. Contact us to learn more about our litigation finance services.
