What is Legal Terms - Pre-Settlement Lawsuit Financing?

Pre-Settlement Lawsuit Financing Information: Pre-Settlement Lawsuit Financing occurs when someone purchases from the claimant a portion of a future recovery or settlement. The portion is generally a defined amount, usually to cover living expenses pending settlement, rather than a percentage of the future settlement. In some pre-settlement lawsuit financing arrangements no payback of the pre-settlement money is required unless money is ultimately received in settlement of the case. The attorney involved should be mindful of ethical rules impacted by pre-settlement lawsuit financing issues.