Journal of Financial Economics Features Academic Publication Discussing Benefits of Legal Finance

In August 2023, Harvard Business School assistant professor, Samuel Antill, and Stanford Graduate School of Business professor, Steven Grenadier, published an academic study in the Journal of Financial Economics, calling attention to the benefits of third-party legal finance and refuting baseless allegations of the industry fueling frivolous litigation. Antill and Grenadier’s findings speak to a larger industry conversation about the value of legal finance for plaintiffs, defendants, and the judicial system. As claims against the legal finance industry continue to be refuted with facts and expert opinions, Antill and Grenadier help to provide further insight and data into the truth of the proven utility of legal finance in claims.

The study shows that the availability of legal finance for plaintiffs ultimately drives down defendants’ spending on litigation tactics, as well as increases the accountability of corporate actors through increased access to resources for meritorious lawsuits. Additionally, Antill and Grenadier refute claims made by the U.S. Chamber of Commerce, discovering that there is no evidence of legal finance encouraging unmeritorious litigation. This aligns with the economic incentives for funders to carefully vet and assess quality of claims prior to investment decisions. Antill and Grenadier’s publication provides further evidence that claims made against legal funding are meritless and that legal finance is a valuable tool for the U.S. justice system.

See the full publication here.