Teresa Gerhold-Kempf

Third-party litigation funding (TPLF) is increasingly commonplace in complex cases. Heavily funded cases expose businesses to heightened risk and more expansive, protracted litigation, all while stirring up myriad legal and ethical minefields. 2026 is a pivotal year for TPLF, with landmark legislative proposals, judicial decisions, and regulatory developments across the US, UK and EU. Companies are well advised to stay alert as its use (and the attendant risks) continue to evolve.This two-part series will summarise the current TPLF landscape in these three jurisdictions and highlight five notable developments in each. This article, Part I, will provide an overview of today’s funding model and a market snapshot, before focusing on the dynamics in the UK and the EU. Part II, to be published in the next edition of this journal, will cover the landscape in the US, as well as suggesting the key takeaways from Parts I and II taken together.