Third-party litigation funding, also known as“ Dark Money,” comes when investors finance lawsuits in exchange for a portion of the settlement. in how insurers model risk factors.
million in 2024 – up 217 % from 2017
• Outdoor advertising, including billboards, rose by over 260 % since 2017.
Global Litigation Funding Investment Market 2025-2034( By Type)
Commercial Litigation Bankruptcy Claim International Litigation Others
Dark Money Driving Those dramatically rising numbers of ads can be attributed to third-party litigation funding( TPLF), which is driving legal system abuse, driving up insurance claims and delaying standard settlements.
TPLF enables plaintiff attorneys to over-promise potential clients big paydays, which creates unrealistic expectations.
Those inflated expectations can make it hard for insurers to negotiate a reasonable out-ofcourt settlement, and it can also prolong the time it takes to settle, which influences the way jurors process facts.
According to ATRA, if an insurer takes a long time to settle a claim, jurors often see the insurance company as unsympathetic or stingy, even if the plaintiff’ s lawyers are asking for unreasonable or exorbitant compensation.
If jurors see the insurance company as being unreasonable, they are more likely to award the plaintiff higher punitive damages.
TPLF, also known as“ Dark Money,” comes when investors finance lawsuits in exchange for a portion of the settlement.
According to the Insurance Information Institute’ s September 2025 briefing report, TPLF, or Dark Money, is a major force driving the surge of massive litigation settlements in recent court cases.
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Experts expect global litigation funding to keep rising for at least the next nine years.
Lawyers have an ethical obligation to exercise independent judgment and zealously represent their clients’ interests. A TPLF investor, on the other hand, is purely a profitseeker gambling on a“ Dark Money opportunity,” without any ethical or professional interest in justice or the personal circumstances of the plaintiff.
Hidden Influence Prolongs Litigation
By enabling broader sustained legal action, TPLF may amplify systematic challenges
Third-party litigation funding, also known as“ Dark Money,” comes when investors finance lawsuits in exchange for a portion of the settlement. in how insurers model risk factors.
When backed by TPLF’ s deep pockets, plaintiffs’ lawyers are less prone to agree to reasonable settlements. They’ re more likely to hold out, hoping that jurors will award the huge payday of a nuclear verdict.
As that happens more often, insurers must raise their premiums and deductibles to cover expected expenses and losses. In the end, both the insurance company and its clients— crane owners— suffer. According to a U. S. General Accounting Office 2024 report,“ Third party funders complicate settlement negotiations, contributing to longer settlement times and longer settlement negotiations measurably increase the cost to settle.”
In this regard alone, TPLF is fundamentally changing the civil justice system.
This article strongly advocates that courts and legislators require disclosure of litigation financing agreements and adopt reforms to negate plaintiff counsel tactics to lengthen litigation from
www. contractorshotline. com October 31, 2025 13