# Litigation funding in mass tort cases

> How third-party litigation funding works and what plaintiffs should know before accepting a cash advance.

**Canonical URL:** https://drugsmonitor.com/guides/litigation-funding-mass-tort-cases
**Last updated:** 2026-06-11

Litigation funding (also called lawsuit loans or settlement advances) provides plaintiffs with cash before their case resolves, in exchange for a portion of the future settlement or judgment. These advances are typically non-recourse, meaning repayment is owed only if the case succeeds.

Interest rates and fees on litigation funding can be very high, sometimes exceeding 30-60% annually. The Consumer Legal Funding Model Act provides some state-level protections, but funding contracts vary widely.

Before accepting litigation funding, read the contract carefully, understand the total payback amount including all fees and interest, and consider whether you can wait until settlement. Discuss funding options with your attorney before signing.

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*Educational guide from DrugsMonitor.com. Not legal advice.*