Issa Litigation Finance Bill ‘Paused’ After Bipartisan Push Back

A bill to regulate litigation finance is in limbo as House lawmakers shift their focus to cracking down specifically on foreign funders investing in US lawsuits.

The measure (H.R. 7015) is “on pause,” according to a person with direct knowledge of the situation, after a Tuesday House Judiciary Committee markup sparked bipartisan opposition. The committee abruptly adjourned without voting on the bill, which would require parties to disclose outside funding behind lawsuits and produce litigation finance agreements.

The development highlights a growing divide among Republicans over litigation finance, in which investors back individual suits or issue loans against ...