Third-Party Litigation Funding in the U.S., UK and EU: What Companies Facing Funded Claims Need to Know

Third-party litigation funding (“TPLF”) is increasingly commonplace in complex cases. Heavily funded cases expose businesses to heightened risk and more expansive, protracted litigation, all while stirring up myriad legal and ethical minefields. 2026 is shaping up to be a pivotal year for TPLF, with landmark legislative proposals, judicial decisions, and regulatory developments across the U.S., UK, and EU. Companies are well advised to stay alert as its use (and the attendant risks) continues to evolve. In this Working Paper, the authors summarize the current TPLF landscape in these three jurisdictions, highlight five notable developments in each, and advise five key takeaways for companies facing funded claims.