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Sens. Reintroduce Litigation Funding Transparency Bill (Law360)

Law360,February 14, 2019

Sens. Reintroduce Litigation Funding Transparency Bill

“Republican senators have reintroduced a bill that would require parties in class action lawsuits to disclose any third-party funding arrangements, with the sponsors saying that this increased transparency would head off potential conflicts of interest and bring more accountability to the litigation funding industry. Litigation funding companies, on the other hand, blasted the measure, titled the Litigation Funding and Transparency Act, as unnecessary, arguing that current disclosure rules are sufficient and that mandatory disclosure was designed to benefit special interests….Litigation funding has also raised ethics questions for state bar associations, including in New York, where the New York City bar formally announced in 2018 that it considers certain third-party funding arrangements unethical and is currently studying the issue further.”

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