Third-party Litigation Funding (TPLF) | Position Paper

Third-party litigation funding (TPLF) allows outside investors to finance lawsuits in exchange for a share of any award—without any federal disclosure requirement. This position paper documents alarming verdict growth: median general liability awards over $1 million grew 26% from 2010–2019, while average trucking verdicts grew by 850%. The Council argues that TPLF inflates litigation costs that are ultimately passed on to policyholders through higher insurance premiums, and supports legislative efforts to mandate disclosure and transparency around funding arrangements.