A new Google poll conducted and released by the U.S. Chamber Institute for Legal Reform found that almost 69 percent of Americans believe that third party litigation funders should be required to disclose their investments in a lawsuit. Litigation funding allows hedge funds and other firms to sign secret deals with plaintiffs’ lawyers to invest in lawsuits in exchange for a percentage of any award or settlement.
The poll, which collected 1,501 responses across the U.S., was conducted online from March 12, 2021, to March 19, 2021.
The poll comes as lawmakers in both the U.S. House and Senate are taking a closer look at bringing the litigation funding industry out of the shadows. Last week, Sens. Chuck Grassley, John Cornyn, and Thom Tillis reintroduced the Litigation Funding Transparency Act (LFTA) in the Senate, and Rep. Darrell Isa introduced companion legislation in the House.
Litigation funding puts investors’ interests ahead of the interests of the party bringing the case. ILR urges Congress to pass the LFTA and take a critical step towards ensuring fairness in our courts.
To learn more about third party litigation funding, watch a short explainer video from ILR’s Faces of Lawsuit Abuse here.