Key Takeaways:
At Pracht Injury Lawyers, no hedge fund, private equity firm, or outside litigation funder has a financial interest in the outcome of our cases or a role in case decisions. When we advise you about settlement, continued negotiation, or litigation, that advice is based on the evidence, applicable law, potential risks, and the goals you have identified for your case. As third-party litigation funding becomes more prominent, that independence matters because your lawyer’s advice should reflect your needs and goals while preserving your authority over settlement.
Third-party litigation funding has grown substantially over the past decade. Specialized finance companies and other investors may fund individual lawsuits, portfolios of cases, law-firm expenses, or an injured person’s living costs in return for compensation tied to the outcome. Critics warn that these arrangements can create competing financial incentives if an outside funder gains influence over settlement timing, litigation strategy, or other case decisions.
We want to be direct with you about how Pracht Injury Lawyers operates, because we believe you deserve to know.
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How Third-Party Litigation Funding Can Affect a Law Firm
When repayment depends on the outcome of specific cases or a portfolio of cases, the funder has a financial interest in those results. That funder is not the client’s lawyer and does not owe the same professional duties of loyalty, confidentiality, communication, and independent legal judgment that an attorney must provide.
Depending on the contract, outcome-contingent funding may create pressure to prioritize the funder’s preferred timing, expenses, or financial return over the client’s individual goals.
How We Make Decisions About Your Case
In a South Carolina personal injury case, you retain final authority over whether to make or accept a settlement offer. Pracht’s attorneys advise you about that decision and handle evidence development, expert selection, procedural matters, and litigation strategy after consulting with you about your goals.
That is not a marketing statement. It is the practical result of how we are structured. We work on a contingency fee basis, which means we earn a percentage of what we recover for you. Because our fee depends on the recovery obtained, we have a financial incentive to pursue compensation for you. We also recognize that your decisions may depend on timing, risk, privacy, medical needs, and other personal priorities that cannot be measured solely in dollars.
Questions to Ask About Who Has a Financial Interest in Your Case
Most injury victims understandably focus on a lawyer’s experience, results, and fees. It is also reasonable to ask whether any outside company has a financial interest in the firm’s cases or could influence how resources are allocated.
Before hiring a personal injury lawyer, consider asking:
- Does any outside litigation funder have an interest in my case? Ask whether repayment to another company depends on the settlement or verdict.
- Who decides whether to accept a settlement? You should retain final authority over whether to make or accept an offer.
- Could an outside company influence case expenses or strategy? A non-lawyer should not direct the attorney’s independent professional judgment.
- Will information about my case be shared with a funder? Ask how the firm protects confidential medical, financial, and legal information.
- How are attorney fees and case expenses handled? Request a clear explanation of the contingency fee, litigation expenses, and how both affect your net recovery.
At Pracht Injury Lawyers, we believe clients deserve direct answers to these questions. Understanding how a firm is financed can help you choose an attorney whose advice remains focused on your claim, your circumstances, and your goals.
What Client-First Decision-Making Looks Like in Practice
Client-first representation affects every stage of the case:
- Settlement decisions remain yours. We explain the offer, likely outcomes, and risks of continuing so you can make an informed choice.
- Legal strategy remains independent. Investigation, expert selection, negotiations, and trial preparation are guided by the evidence and our professional judgment.
- Timing reflects your circumstances. We consider your medical recovery, financial needs, and long-term goals when recommending the next step.
- Communication keeps you involved. We explain major developments and consult with you about decisions that affect the direction of your claim.
Why This Matters More Now
Third-party litigation funding is receiving increasing attention from lawmakers and legal organizations.
In June 2026, North Carolina enacted the Prohibit Litigation Investments Act, which bars many forms of outcome-contingent litigation investment while preserving several exceptions. South Carolina has not enacted a comparable prohibition. The proposed South Carolina Transparency in Consumer Legal Funding Act would establish registration, disclosure, contract, and consumer-protection requirements for certain consumer legal funding agreements, but the bill remains in the House Judiciary Committee.
For you, the practical question is whether an outside financial interest could affect their settlement authority, the advice they receive, or the strategy used to pursue their claim. At Pracht, our approach is straightforward.
Whether your case involves a car accident, a workplace injury, or medical malpractice, it is not managed to satisfy an outside funder’s return expectations. It is a deeply personal legal matter with real consequences for your health, finances, and future, and we give it the attention it deserves.