According to Law360, there is “growing support among federal judges who oversee multidistrict litigations” for a rule to address third party litigation funding.
Third party funding was a key point of discussion at the federal Advisory Committee on Civil Rules meeting in Washington, D.C. yesterday. One of the committee’s reporters said the American Bar Association and state bar organizations “are very concerned” over potential ethics issues and are “studying” rulemaking avenues. The Advisory Committee Chairman, U.S. District Judge John D. Bates, said he believes that a potential rule should apply to both multidistrict litigation and non-multidistrict litigation because it is “an issue that comes up in all sorts of litigation."
A subgroup created by the Committee has been studying third party litigation funding rule proposals for a year.