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Pre-Settlement Lawsuit Financing
Information: Pre-Settlement Lawsuit Financing occurs when someone
purchases from the claimant a portion of a future recovery or settlement. The portion is generally a defined amount, usually to
cover living expenses pending settlement, rather than a percentage of the future
settlement. In some pre-settlement lawsuit financing arrangements no
payback of the pre-settlement money is required unless money is ultimately
received in settlement of the case. The attorney involved should be
mindful of ethical rules impacted by pre-settlement lawsuit financing issues.