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 Massachusetts, 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 state statute in Massachusetts that explicitly regulates litigation funding, the practice is generally permitted. However, it is subject to common law principles and ethical considerations that govern the conduct of attorneys and the litigation process. Attorneys in Massachusetts must adhere to the Massachusetts Rules of Professional Conduct, which impose duties regarding conflicts of interest, confidentiality, and the maintenance of independent professional judgment. Litigation funders and parties must also be cautious of issues such as champerty and maintenance, which historically prohibited third-party financing of lawsuits, but these doctrines have been significantly eroded in modern legal practice.