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 Arizona, litigation funding, also known as litigation financing or 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. This funding is typically non-recourse, meaning that the funder will only be repaid from the proceeds of a settlement or judgment if the litigation is successful. Arizona does not have specific statutes directly regulating litigation funding for general civil litigation, but such arrangements must comply with general legal principles, including those related to champerty and maintenance (which historically prohibited disinterested third parties from funding lawsuits), usury laws, and professional conduct standards for attorneys. The Arizona Rules of Professional Conduct require attorneys to maintain independence and disclose any potential conflicts of interest, which would include informing clients of any involvement by a third-party funder. As of the knowledge cutoff in 2023, parties engaging in litigation funding should ensure that their agreements are transparent and comply with existing legal and ethical standards.