The Power and Peril of Big Law Contingency Practices
In recent years, law firms have taken on an increasing number of contingency cases—but doing so can be a gamble. Fee delays, risk of loss, soaring out-of-pocket costs and potentially going years without revenue are just a few of the risks. It can also lead to unusual volatility in firm revenue. So why are so many firms turning to litigation funding to mitigate these risks? This article examines the benefits and risks of litigation funding and addresses successful models in cost and risk sharing. It also compares how funding can be used successfully as a tool at different types of law firms.