Litigation funding—also known as litigation financing or third-party litigation funding (TPLF)—provides a person or entity with the money to pay attorney fees, expert witnesses, and other costs necessary for litigation. Litigation funding is essentially a loan, secured by the proceeds of the expected settlement or collection of judgment in a lawsuit, and is designed to allow persons or entities without the necessary resources to pursue valid claims in litigation.

In Arkansas, litigation funding, also known as third-party litigation funding (TPLF), is a practice where a third party provides financial assistance to a litigant to cover legal expenses such as attorney fees and expert witness costs. The funding is typically provided in exchange for a portion of the settlement or judgment proceeds. Arkansas does not have specific statutes directly regulating litigation funding for general civil litigation. However, the Arkansas Ethics Commission has issued an advisory opinion stating that non-recourse litigation funding does not violate the state's ethics rules as long as the attorney does not share legal fees with the funder and maintains client confidentiality. It is important for parties involved in litigation funding agreements in Arkansas to ensure that the arrangements comply with all relevant professional conduct rules and do not involve champerty or maintenance, which are generally prohibited. As with any financial agreement, it is advisable to consult with an attorney to understand the legal implications and ensure compliance with applicable laws and ethical standards.