Litigation Equity

Litigation equity (also legal financing, a legal stock or a lawsuit stock) refers to the capital invested in a litigation crowdfunding project (a lawsuit). Investors provide capital to a plaintiff in litigation in exchange for a portion of the plaintiff’s settlement. Plaintiffs can use that money to pay attorney’s fees, expert witness fees, and court expenses. Litigation equity is a high-risk (if the claimant loses the case, investors might lose all of their invested capital) and illiquid investment (depending on the duration of the court case). Read more in our article dedicated to litigation crowdfunding.