Third-party litigation financing (TPLF)

{
  "id": "MLC-T-INS-003324",
  "term": "Third-party litigation financing (TPLF)",
  "field": "Insurance and risk management",
  "definition": "The practice where an external investor, who is not a party to the lawsuit, provides funds to a litigant in exchange for a portion of any potential settlement or award. This financing allows plaintiffs to pursue claims they might otherwise be unable to afford, transferring some of the financial risk of litigation. The investor typically receives no return if the case is lost.",
  "abbreviation": "TPLF",
  "url": "https://mlchart.com/terminology/insurance/third-party-litigation-financing-tplf/"
}