Recent reporting on the consumer litigation funding industry included a serious claim: that some plaintiffs underwent unnecessary surgery so they could qualify for larger funding advances. At The Milestone Foundation, the nation’s first and only 501(c)(3) nonprofit consumer litigation funding organization, we have not seen anything like that. We do not encourage, request, or condition funding on any medical procedure, and our mission-driven model gives plaintiffs and their attorneys every reason to keep medical decisions exactly where they belong: with doctors and patients.
This fact check explains what the reporting said, why a nonprofit model changes the incentives, and how attorney participation plus transparent terms keep plaintiffs protected from harmful practices.
What Did the Recent Report Claim About Unnecessary Surgery?
The article, published by The New York Times, examined how some for-profit litigation funding companies operate. It described aggressive sales tactics and quoted a former salesperson who claimed plaintiffs underwent unnecessary surgery to obtain more funding from their advance company. You can read the original reporting at The New York Times.
Direct Answer: The report describes practices attributed to commercial, for-profit funders. It does not describe the practices of The Milestone Foundation, which has not observed plaintiffs undergoing unnecessary surgery to obtain funding.
We take these reports seriously because the integrity of the litigation funding industry depends on it. Every plaintiff deserves funding that helps them reach a just result without pressure, manipulation, or harm. A funding model designed to maximize advances through unnecessary medical procedures would violate that principle completely.
A Nonprofit Model With No Incentive to Push Procedures
The Milestone Foundation is a 501(c)(3) nonprofit. That structure is not a marketing detail, it changes the financial incentives at the core of every funding decision.
Direct Answer: Because The Milestone Foundation is a nonprofit, it has no profit motive to increase funding amounts through unnecessary procedures. Its mission is to help plaintiffs reach a just result, not to maximize loan volume.
For-profit funders profit when they issue larger advances, because their revenue grows with every dollar lent and every month the case is open. That incentive is what the recent reporting describes: salespeople with monthly quotas, calling attorneys to push more money, and in the most extreme allegations, plaintiffs persuaded to undergo surgery to increase their case value and, in turn, the advance they could receive.
None of that matches how we operate. As a nonprofit, our revenue funds the mission of expanding access to justice. We exist to provide fair, transparent funding that helps plaintiffs avoid accepting unfair settlements, not to generate returns for investors. When the incentive to maximize volume disappears, so does the pressure to manufacture case value through medical procedures.
See How Nonprofit Funding Works
How Attorney Participation Keeps Medical Decisions With Doctors and Clients
Every application for pre-settlement funding with The Milestone Foundation requires attorney participation. The funding decision is anchored to the strength of the case, as evaluated with the attorney, not to any medical procedure.
Direct Answer: Attorney participation is required for every Milestone Foundation funding application. Medical decisions stay with the plaintiff and their doctor, and the attorney’s fiduciary duty to the client remains intact.
This structure is deliberate. Your attorney is the person best positioned to protect your interests throughout litigation. They know the facts of the case, the value of your claim, and the timing of any settlement. By requiring attorney involvement, we make sure funding supports the case as it actually exists, based on the injuries and losses the plaintiff has already suffered.
No funding decision at The Milestone Foundation depends on a plaintiff undergoing a procedure, seeing a specific provider, or increasing their medical bills. We review the case with the attorney, verify the claim, and provide funding that covers essential living expenses while the case moves forward. Medical treatment decisions are made by the plaintiff and their doctor, period.
What Does Responsible Funding Actually Look Like?
If the recent reporting leaves you wondering what ethical litigation funding looks like, the answer is transparency, clear terms, and alignment with the client’s interests.
Direct Answer: Responsible funding is non-recourse, carries simple interest that never compounds, includes no hidden fees, and requires attorney participation so the client’s interests stay protected.
- Non-recourse: You owe nothing if you lose your case. There is no repayment obligation hanging over a failed claim.
- Simple interest only: Pre-settlement funding carries 15% simple annual interest and post-settlement funding carries 10% simple interest. Interest never compounds.
- No hidden fees: The terms you agree to are the terms you pay. There are no surprise charges buried in the fine print.
- Attorney participation required: Your attorney is involved in every funding decision, protecting your interests and your case.
- No quota-driven sales: We do not set advance targets or encourage plaintiffs to take out money they do not need.
- Fair repayment: Simple interest means your recovery keeps more of what it should, even when a case takes time to resolve.
- Mission-driven: As a nonprofit, our goal is access to justice, not investor returns.
These are not marketing promises, they are the structural terms of how we operate. You can see them in writing on every application, and your attorney can confirm them before you proceed. For a deeper look at how to evaluate any funding offer, see our guide on how to vet litigation funding companies.
Why Simple Interest and Non-Recourse Terms Protect Plaintiffs
The reporting also highlighted how plaintiffs can end up with only a fraction of their settlement. That outcome is common with compounding-rate funding, where interest grows month after month and eats into the recovery.
Direct Answer: Simple interest that never compounds, combined with non-recourse terms, means plaintiffs keep more of their settlement and never face a debt spiral from a losing case.
At The Milestone Foundation, pre-settlement funding is offered at 15% simple annual interest and post-settlement funding at 10% simple interest. Interest never compounds, so the balance grows predictably and modestly, not exponentially. This is a structural difference from for-profit funders, many of whom charge rates that can exceed 200% annually through compounding. The math is explained in our breakdown of the hidden cost of compounding interest in lawsuit loans.
Because our funding is non-recourse, plaintiffs owe nothing if they lose their case. There is no personal guarantee, no collection against personal assets, and no burden on family members. The risk stays with the foundation, which is exactly how mission-driven funding should work. Learn more about non-recourse lawsuit funding and what happens if you lose.
These protections matter because plaintiffs already face enough pressure. Between mounting bills, a case that drags on, and the temptation to accept a low settlement just to make ends meet, the last thing anyone needs is a funding product that makes the problem worse. Simple interest and non-recourse terms remove the financial pressure that leads to bad decisions, including the pressure to accept an unfair offer.
Fact Check: Does The Milestone Foundation Encourage Any Medical Procedure?
The direct answer is no.
Direct Answer: The Milestone Foundation has never encouraged, requested, or conditioned funding on any medical procedure. We have not observed plaintiffs undergoing unnecessary surgery to obtain funding, and our nonprofit model provides no incentive for that practice.
We do not have sales teams with monthly advance quotas. We do not call attorneys to push clients into taking money they do not need. And we absolutely do not tie funding amounts to medical treatment. The recent reporting describes a for-profit sales culture that is the opposite of our mission: we help plaintiffs reach a just result, and we measure success by fairness, not by the size of an advance.
For attorneys evaluating funding partners, our ethical guide to pre-settlement funding for attorneys explains the questions to ask before recommending any provider. And for a broader comparison, see how lawsuit loans compare with settlement advances under a nonprofit model.
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Frequently Asked Questions About Litigation Funding and Medical Care
Can a litigation funding company require me to undergo surgery?
No. A legitimate funding company evaluates the case that already exists, based on the injuries and losses documented with your attorney. You should never be asked to undergo any medical procedure to qualify for funding.
Does The Milestone Foundation tie funding amounts to medical treatment?
No. We review the case with your attorney and provide advances for essential living expenses while litigation is pending. We have never conditioned funding on any procedure, and our nonprofit model gives us no incentive to do so.
What interest rate does The Milestone Foundation charge?
Pre-settlement funding carries 15% simple annual interest, and post-settlement funding carries 10% simple interest. Interest never compounds, and there are no hidden fees.
What happens if I lose my case?
Because our funding is non-recourse, you owe nothing if you lose. There is no repayment obligation tied to a failed claim.
Is attorney participation required?
Yes. Every funding application requires attorney participation so your interests and your case stay protected throughout the process.
How is nonprofit litigation funding different from a lawsuit loan?
Nonprofit litigation funding is structured to serve the plaintiff, not investors. It combines simple interest, non-recourse terms, no hidden fees, and attorney-aligned practices, which is why it does not come with the aggressive sales culture described in recent reporting.
If you or your client are considering litigation funding, ask the hard questions: Is the funding non-recourse? Is the interest simple and capped? Are there hidden fees? Does the provider encourage medical procedures or unnecessary advances? The answers separate responsible funders from the practices described in recent reporting. The Milestone Foundation is proud to answer those questions with terms that protect plaintiffs, and we invite attorneys to contact us or explore fair funding through our application.