Insights & Resources: Litigation Finance

The recent legislative push—then retreat—to impose a tax on litigation funding returns didn’t change the law, but it clarified what’s at stake. It shined a spotlight on the solution that litigation funding provides for the legal industry and to intellectual property owners. Litigation finance doesn’t present a taxation loophole to close. It’s a process that allows plaintiffs with strong claims—and limited resources—to make it to the courthouse steps. In the IP world, where the costs of litigation can eclipse the means of most inventors, startups, and universities, non-recourse litigation funding often is the only way to level the playing field. The investment risks for funders are high; the returns shouldn’t be penalized. The right policy response isn’t punitive taxation or blanket disclosure of sensitive funding terms, but acceptance of funding as a necessary tool and tailored transparency under the court’s supervision, so that financial disparity doesn’t become a tactical weapon.  The goal is simple: Keep the courthouse doors open while maintaining fairness and integrity in the adversarial system.

It feels like every couple of weeks an article appears lamenting the rise of litigation finance as the death of capitalism and the birth of something monstrous. The most recent chorus began over the summer when the CEO of Chubb called litigation finance “ a hidden tax on society ” in the editorial pages of the Wall Street Journal. A month later, the CEO of The Hartford grieved on an investor call that litigation finance has “turned our judicial system into a gambling system.” And just last month, the American Property Casualty Insurance Association ’s Senior Vice President of Federal Government Relations exclaimed: “Too many baseless claims, filed by lawyers motivated by profit are clogging our legal system with unnecessary lawsuits, increasing costs and delaying swift resolution of genuine legal claims.”  As someone who has been a big firm defense lawyer, a small firm plaintiff lawyer, and now a litigation funder, I can confidently say that these arguments fundamentally misunderstand litigation finance and its incentives, while simultaneously conflating the interests of large repeat defendants with those of society writ large.

The International Legal Finance Association (ILFA) submitted a letter last week to the Judicial Conference of the United States, highlighting the benefits of third-party litigation funding, and arguing that mandatory disclosure rules would have a disproportionately negative impact on small businesses and vulnerable Americans. Drawing on arguments made by Certum’s William Marra in a forthcoming Southern […] The post ILFA Letter to Federal Rules Committee Highlights Benefits of Funding appeared first on Certum Group.

Litigation finance is a powerful tool for companies that have strong claims but cannot afford to hire first-class counsel to pursue those claims. Unfortunately, a proposed Congressional bill would have imposed an onerous tax regime upon litigation finance companies, significantly diminishing claimholders’ ability to pursue strong legal claims. Certum Director William Marra wrote an opinion […] The post Don’t Weaponize the Tax Code Against Litigation Finance appeared first on Certum Group.

As litigation funding becomes more commonplace and continues to grow by leaps and bounds, it is important that litigation funders possess a reasoned voice. Certum Group Director of Intellectual Property Bryce Barcelo was recently interviewed in a Bloomberg Law article discussing the recent nomination of John A. Squires to lead the US Patent and Trademark […] The post Bryce Barcelo Examines the Patent & Trademark Office’s New Director appeared first on Certum Group.

Certum’s Legal Director, Kirstine Rogers, co-authored an article with Molly Pease of Curiam Capital, an important article for the Legal Funding Journal to recognize International Women’s Day. — As our country continues to debate the pros and cons of diversity, equity, and inclusion programs in the government and private sectors, the litigation finance industry would […] The post “Show Me the Money” – Diverse Teams are a Revenue Driver and Not Just the Right Thing to Do appeared first on Certum Group.

The litigation funding landscape has transformed dramatically over the past decade, becoming an integral part of the modern legal industry. Certum Group Director William Marra was recently interviewed in a CDR article discussing the current and future state of the litigation funding market.  “Ten years ago, and maybe even five years ago, a lot of […] The post Will Marra Discusses the Future of Litigation Finance appeared first on Certum Group.

On January 21, 2025, Certum Group’s William Marra and Kevin Skrzysowski held a panel in conjunction with Practising Law Institute (PLI), tackling litigation finance from A-Z. The panel highlights the latest issues facing the industry, best practices for terms and pricing, and what the future holds in this industry. Other key topics covered include: Click […] The post Webinar: Litigation Funding 201 – Wlliam Marra and Kevin Skrzysowski at PLI appeared first on Certum Group.

The recent legislative push—then retreat—to impose a tax on litigation funding returns didn’t change the law, but it clarified what’s at stake. It shined a spotlight on the solution that litigation funding provides for the legal industry and to intellectual property owners. Litigation finance doesn’t present a taxation loophole to close. It’s a process that allows plaintiffs with strong claims—and limited resources—to make it to the courthouse steps. In the IP world, where the costs of litigation can eclipse the means of most inventors, startups, and universities, non-recourse litigation funding often is the only way to level the playing field. The investment risks for funders are high; the returns shouldn’t be penalized. The right policy response isn’t punitive taxation or blanket disclosure of sensitive funding terms, but acceptance of funding as a necessary tool and tailored transparency under the court’s supervision, so that financial disparity doesn’t become a tactical weapon.  The goal is simple: Keep the courthouse doors open while maintaining fairness and integrity in the adversarial system.

It feels like every couple of weeks an article appears lamenting the rise of litigation finance as the death of capitalism and the birth of something monstrous. The most recent chorus began over the summer when the CEO of Chubb called litigation finance “ a hidden tax on society ” in the editorial pages of the Wall Street Journal. A month later, the CEO of The Hartford grieved on an investor call that litigation finance has “turned our judicial system into a gambling system.” And just last month, the American Property Casualty Insurance Association ’s Senior Vice President of Federal Government Relations exclaimed: “Too many baseless claims, filed by lawyers motivated by profit are clogging our legal system with unnecessary lawsuits, increasing costs and delaying swift resolution of genuine legal claims.”  As someone who has been a big firm defense lawyer, a small firm plaintiff lawyer, and now a litigation funder, I can confidently say that these arguments fundamentally misunderstand litigation finance and its incentives, while simultaneously conflating the interests of large repeat defendants with those of society writ large.

The International Legal Finance Association (ILFA) submitted a letter last week to the Judicial Conference of the United States, highlighting the benefits of third-party litigation funding, and arguing that mandatory disclosure rules would have a disproportionately negative impact on small businesses and vulnerable Americans. Drawing on arguments made by Certum’s William Marra in a forthcoming Southern […] The post ILFA Letter to Federal Rules Committee Highlights Benefits of Funding appeared first on Certum Group.

Litigation finance is a powerful tool for companies that have strong claims but cannot afford to hire first-class counsel to pursue those claims. Unfortunately, a proposed Congressional bill would have imposed an onerous tax regime upon litigation finance companies, significantly diminishing claimholders’ ability to pursue strong legal claims. Certum Director William Marra wrote an opinion […] The post Don’t Weaponize the Tax Code Against Litigation Finance appeared first on Certum Group.

As litigation funding becomes more commonplace and continues to grow by leaps and bounds, it is important that litigation funders possess a reasoned voice. Certum Group Director of Intellectual Property Bryce Barcelo was recently interviewed in a Bloomberg Law article discussing the recent nomination of John A. Squires to lead the US Patent and Trademark […] The post Bryce Barcelo Examines the Patent & Trademark Office’s New Director appeared first on Certum Group.

Certum’s Legal Director, Kirstine Rogers, co-authored an article with Molly Pease of Curiam Capital, an important article for the Legal Funding Journal to recognize International Women’s Day. — As our country continues to debate the pros and cons of diversity, equity, and inclusion programs in the government and private sectors, the litigation finance industry would […] The post “Show Me the Money” – Diverse Teams are a Revenue Driver and Not Just the Right Thing to Do appeared first on Certum Group.

The litigation funding landscape has transformed dramatically over the past decade, becoming an integral part of the modern legal industry. Certum Group Director William Marra was recently interviewed in a CDR article discussing the current and future state of the litigation funding market.  “Ten years ago, and maybe even five years ago, a lot of […] The post Will Marra Discusses the Future of Litigation Finance appeared first on Certum Group.

On January 21, 2025, Certum Group’s William Marra and Kevin Skrzysowski held a panel in conjunction with Practising Law Institute (PLI), tackling litigation finance from A-Z. The panel highlights the latest issues facing the industry, best practices for terms and pricing, and what the future holds in this industry. Other key topics covered include: Click […] The post Webinar: Litigation Funding 201 – Wlliam Marra and Kevin Skrzysowski at PLI appeared first on Certum Group.

The recent legislative push—then retreat—to impose a tax on litigation funding returns didn’t change the law, but it clarified what’s at stake. It shined a spotlight on the solution that litigation funding provides for the legal industry and to intellectual property owners. Litigation finance doesn’t present a taxation loophole to close. It’s a process that allows plaintiffs with strong claims—and limited resources—to make it to the courthouse steps. In the IP world, where the costs of litigation can eclipse the means of most inventors, startups, and universities, non-recourse litigation funding often is the only way to level the playing field. The investment risks for funders are high; the returns shouldn’t be penalized. The right policy response isn’t punitive taxation or blanket disclosure of sensitive funding terms, but acceptance of funding as a necessary tool and tailored transparency under the court’s supervision, so that financial disparity doesn’t become a tactical weapon.  The goal is simple: Keep the courthouse doors open while maintaining fairness and integrity in the adversarial system.

It feels like every couple of weeks an article appears lamenting the rise of litigation finance as the death of capitalism and the birth of something monstrous. The most recent chorus began over the summer when the CEO of Chubb called litigation finance “ a hidden tax on society ” in the editorial pages of the Wall Street Journal. A month later, the CEO of The Hartford grieved on an investor call that litigation finance has “turned our judicial system into a gambling system.” And just last month, the American Property Casualty Insurance Association ’s Senior Vice President of Federal Government Relations exclaimed: “Too many baseless claims, filed by lawyers motivated by profit are clogging our legal system with unnecessary lawsuits, increasing costs and delaying swift resolution of genuine legal claims.”  As someone who has been a big firm defense lawyer, a small firm plaintiff lawyer, and now a litigation funder, I can confidently say that these arguments fundamentally misunderstand litigation finance and its incentives, while simultaneously conflating the interests of large repeat defendants with those of society writ large.

The International Legal Finance Association (ILFA) submitted a letter last week to the Judicial Conference of the United States, highlighting the benefits of third-party litigation funding, and arguing that mandatory disclosure rules would have a disproportionately negative impact on small businesses and vulnerable Americans. Drawing on arguments made by Certum’s William Marra in a forthcoming Southern […] The post ILFA Letter to Federal Rules Committee Highlights Benefits of Funding appeared first on Certum Group.

Litigation finance is a powerful tool for companies that have strong claims but cannot afford to hire first-class counsel to pursue those claims. Unfortunately, a proposed Congressional bill would have imposed an onerous tax regime upon litigation finance companies, significantly diminishing claimholders’ ability to pursue strong legal claims. Certum Director William Marra wrote an opinion […] The post Don’t Weaponize the Tax Code Against Litigation Finance appeared first on Certum Group.

As litigation funding becomes more commonplace and continues to grow by leaps and bounds, it is important that litigation funders possess a reasoned voice. Certum Group Director of Intellectual Property Bryce Barcelo was recently interviewed in a Bloomberg Law article discussing the recent nomination of John A. Squires to lead the US Patent and Trademark […] The post Bryce Barcelo Examines the Patent & Trademark Office’s New Director appeared first on Certum Group.

Certum’s Legal Director, Kirstine Rogers, co-authored an article with Molly Pease of Curiam Capital, an important article for the Legal Funding Journal to recognize International Women’s Day. — As our country continues to debate the pros and cons of diversity, equity, and inclusion programs in the government and private sectors, the litigation finance industry would […] The post “Show Me the Money” – Diverse Teams are a Revenue Driver and Not Just the Right Thing to Do appeared first on Certum Group.

The litigation funding landscape has transformed dramatically over the past decade, becoming an integral part of the modern legal industry. Certum Group Director William Marra was recently interviewed in a CDR article discussing the current and future state of the litigation funding market.  “Ten years ago, and maybe even five years ago, a lot of […] The post Will Marra Discusses the Future of Litigation Finance appeared first on Certum Group.

On January 21, 2025, Certum Group’s William Marra and Kevin Skrzysowski held a panel in conjunction with Practising Law Institute (PLI), tackling litigation finance from A-Z. The panel highlights the latest issues facing the industry, best practices for terms and pricing, and what the future holds in this industry. Other key topics covered include: Click […] The post Webinar: Litigation Funding 201 – Wlliam Marra and Kevin Skrzysowski at PLI appeared first on Certum Group.