Inside Sources: Third-Party Lawsuit Funding Costs U.S. Economy Billions, Report Finds

As the Trump administration makes lowering costs for American families a central goal of its economic agenda, a growing body of research is pointing to a largely overlooked contributor to higher prices across the economy: third-party litigation funding.

Third-party litigation funding (TPLF) allows outside investors to finance lawsuits in exchange for a portion of any settlement or court award. While once confined to niche commercial disputes, the practice has expanded rapidly in recent years, turning the United States into the global epicenter of litigation finance — and, critics argue, magnifying its economic consequences.