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 Pennsylvania, 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, court costs, and expert witness fees. 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. Pennsylvania does not have specific statutes directly regulating litigation funding for general civil litigation, but the practice is generally permitted and governed by contract law, ethical rules for attorneys, and case law. Attorneys in Pennsylvania must adhere to the Rules of Professional Conduct, which require them to maintain independence and client confidentiality, and prohibit them from giving financial assistance to clients for pending or contemplated litigation, with certain exceptions for advancing court costs and expenses of litigation. It is important for parties considering litigation funding to ensure that any agreements comply with these ethical rules and do not compromise the attorney's professional responsibilities.