Litigation Funders Risk Disclosure in Court Rules, GAO Moves (1)

Litigation funders risk public disclosure about their role financing lawsuits from a body that sets federal court rules and lawmakers who commissioned a study of their activities.

Lawyers for Civil Justice, a group of defense-side lawyers, are seeking to amend procedures so that plaintiffs would need to disclose financial backing from investors in federal appeals courts.

An existing rule “is failing to provide circuit judges any information” on financing that could pose conflicts, Lawyers for Civil Justice said in its request this month to the Advisory Committee on Appellate Rules.

While corporate defense groups have long pushed for disclosures about ...