ABSTRACT
After an accident-related injury, individuals can defer expenses to others through default, crowdfunding, or lawsuits. This paper examines the relationship between the latter two options by evaluating the impact of personal injury law firms’ advertisements on crowdfunding. Using a newly assembled dataset of over two million GoFundMe campaigns and exploiting borders of local television advertising markets, we document a significant positive effect of advertising on crowdfunding, indicating that suing and crowdfunding are complements rather than substitutes. We present evidence that individuals engaged in litigation turn to crowdfunding to alleviate short-term liquidity needs arising from litigation.
Lee, Brian Jonghwan and Coombs, Kyle, Asking and Suing to Pay the Bills? Crowdfunding and Personal Injury Lawsuits (July 14, 2026).
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