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 Iowa, 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. While there is no specific Iowa statute that directly regulates litigation funding, the practice is generally permitted. However, funders and litigants must ensure that the funding arrangements comply with Iowa's ethical rules regarding attorney conduct, which prohibit attorneys from giving or promising financial assistance to clients, with certain exceptions for advancing court costs and expenses of litigation. Additionally, the Iowa Supreme Court has the authority to regulate the practice of law in the state, which could include aspects of litigation funding. It is important for parties involved in litigation funding to consult with an attorney to ensure that their funding agreements are legally sound and do not violate any ethical or legal standards.