Senate Bill Aims to Disclose Litigation Financing in Class Action and Multidistrict Litigation

U.S. Senate Judiciary Committee Chairman Chuck Grassley, Senator John Cornyn, and Senator Thom Tillis introduced a bill that would require third party litigation funding and lawsuit lending arrangements be disclosed, Legal Newsline reports.

The Litigation Funding Transparency Act would introduce litigation funding transparency in all class action lawsuits and multidistrict litigation by requiring disclosure to all parties involved. In a press release, Sen. Grassley said a “healthy dose of transparency is needed to ensure that these profiteers aren’t distorting our civil justice system.”

U.S. Chamber Institute for Legal Reform President Lisa A. Rickard said the bill’s introduction “signals that key Senators realize the dangers that secretive lawsuit funding deals pose to fairness and justice in our courts.”