Earlier today, civil justice reform champions in the Senate introduced the Litigation Funding Transparency Act of 2026. This legislation, introduced by Senators Chuck Grassley (R-IA), Thom Tillis (R-NC), John Kennedy (R-LA), and John Cornyn (R-TX), would require disclosure of third-party litigation funding (TPLF), as well as the underlying funding agreements, in federal class actions and federal multi-district litigation proceedings (MDLs). it would also prohibit funders in class actions and MDLs from being able to control decision-making or the overall activities in the litigation.
“Outside financiers treat our court system like a casino. They drive up costs for consumers and put our national and economic security at risk. Americans should not be taken advantage of in our own courtrooms,” said ILR President Stephen Waguespack, responding to the bill’s introduction. “All parties involved in class actions and multi-district litigation cases should know who is secretly bankrolling the cases and manipulating the outcomes for profit. Requiring the disclosure of these hidden financial interests will protect American businesses and safeguard the integrity of our justice system. The U.S. Chamber of Commerce thanks Senators Grassley, Tillis, Kennedy, and Cornyn for their leadership on this critical issue and we encourage the Senate to advance this legislation.”
