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 Colorado, 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. Colorado does not have specific statutes directly regulating litigation funding for general civil litigation. However, the Colorado Supreme Court has issued rules that may impact litigation funding, such as rules regarding professional conduct that prevent attorneys from sharing fees with non-attorneys and rules that maintain the attorney's duty of loyalty and confidentiality to their client. Funders and parties involved in litigation funding must navigate these rules to ensure that the funding arrangements do not violate ethical standards. Additionally, disclosure of litigation funding arrangements may be required under certain circumstances during the litigation process.