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 Illinois, 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. Illinois does not have specific statewide regulation that governs litigation funding for all types of cases; however, the Illinois Consumer Fraud and Deceptive Business Practices Act may apply to protect consumers from unfair practices in the context of consumer litigation funding. Additionally, the Illinois Code of Civil Procedure and rules of professional conduct for attorneys may indirectly affect litigation funding agreements, particularly regarding issues of attorney independence and client privilege. It is important for parties considering litigation funding in Illinois to consult with an attorney to ensure that their funding agreements are in compliance with applicable laws and ethical standards.