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 Maryland, litigation funding, also known as 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 is repaid from the proceeds of a settlement or judgment if the case is successful, and receives nothing if the case is lost. Maryland does not have specific statutes directly regulating litigation funding for general civil litigation. However, the practice must comply with general state laws on lending and usury, professional conduct, and champerty and maintenance, which historically prohibited third-party financing of lawsuits. Attorneys involved in litigation funding arrangements must also adhere to ethical rules regarding client confidentiality, conflict of interest, and control over the litigation. As of the knowledge cutoff date, parties considering litigation funding in Maryland should consult with an attorney to ensure that any funding arrangement complies with applicable laws and ethical standards.