98% of Lawyers Who Previously Used Litigation Funding Would Do So Again, Survey Finds

August 6, 2019

ALM Intelligence and Validity Finance Partner to Survey American Lawyers on their Experiences Using Litigation Finance

New York, NY - ALM Intelligence and Validity Finance have published a set of reports on the litigation finance sector. Drawn from the results of a survey conducted in early 2019, polling 330 lawyers in total, the reports provide insight into the status of litigation finance in the U.S. and examine lawyers’ perceptions of legal financing as a mechanism for promoting access to justice, risk mitigation, and profitability.

“Our mission is to promote a better understanding of the business of law,” said Steve Kovalan, Director of Research, ALM Legal Intelligence. “For that reason, we couldn’t be more excited about our partnership with Validity in conducting this unique study that dives deep into the litigation finance client experience.”

The survey results are being released in three separate reports: an overview of the complete study, along with results specific to both law firms and legal departments. Key findings in the reports include:

  • 93% of law firm respondents who have used funding reported a positive experience and 98% would use it again.
  • 27% of lawyers who have used funding have lingering ethical concerns, the biggest being client confidentiality and privilege.
  • 70% of respondents believe litigation finance is a key disruptor in the legal industry with 50% of respondents believing funding has been used against them.

“Validity’s goal is to set the industry standard for outstanding client service. We believe it’s important to understand what clients really need and want from litigation finance, which is why we conducted a survey that focused on client needs rather than on the growth of the industry or the amount of capital flowing into it,” reflected Dave Kerstein, Chief Risk Officer, Validity Finance. “Thanks to ALM’s expertise and partnership, we think these reports will deepen our industry’s understanding of how we can better serve businesses and the legal profession.”  

To download the reports on the litigation finance sector for corporate law firms and in-house counsel, visit: at.alm.com/litigation-finance-surveys

About ALM Intelligence

ALM Intelligence, a division of ALM Media LLC, supports legal, consulting, and benefits decision-makers seeking guidance on critical business challenges. Their proprietary market reports and analysis, rating guides, prospecting tools, surveys, and rankings, inform and empower business leaders to meet business challenges with confidence. Please visit www.alm.com/intelligence for more information.

About Validity

Validity is a commercial litigation finance company that provides businesses, law firms and individuals with non-recourse financing for a wide variety of commercial disputes. With $250 million in financing, Validity believes that capital and legal expertise combine to help solve legal problems on behalf of clients. Validity’s mission is to make a meaningful difference for clients by focusing on fairness, ethics, innovation, and clarity.  For more, visit www.validityfinance.com.