National Law Journal reports that Sens. Chuck Grassley (R-IA), John Cornyn (R-TX), Thom Tillis (R-NC), and Ben Sasse (R-NE) reintroduced the Litigation Funding Transparency Act, which would require third party litigation funding arrangements to be disclosed in litigation.
The bill would require disclosure in class action and multidistrict litigation within 10 days of a case filing or 10 days after the closure of a funding deal. The bill also applies to lawsuit lending, which is the practice of firms offering up-front cash to plaintiffs in exchange for a cut of the settlement or judgement. These loans typically come with sky-high interest rates. Currently, litigation funding arrangements are often kept out of the public eye and hidden from parties and judges involved in litigation.
In a blog post, U.S. Chamber Institute for Legal Reform President Lisa A. Rickard said it is “time for the lucrative business of betting on other peoples’ lawsuits to get examined in the light of day, and the Litigation Funding Transparency Act will do just that.”