Judge Snubs Call for Funding Disclosures: Litigation Finance

Happy Friday! Everything is bigger in Texas, including litigation funding conferences.

I spent much of the week at the industry conference LITFINCON, held at the fancy Post Oak Hotel in Houston. At times, it felt more like a party than a conference. Bruno Mars blasted from the speakers as panelists took the stage to discuss everything from the secondary market to pending legislation.

There was a red carpet, a professional comedian, and even a casino night. Yes, the industry accused of making bets on lawsuits was making bets... with fake money.

But the real news came from a panel of current and former justices who shared their views on litigation funding and the many attempts to require funders to disclose their presence to the court.

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Judge Alan Albright, a federal judge in one of the country’s busiest courts for patent disputes, was clear on his position: whether there’s funding behind a case is irrelevant.

Patent litigation is a huge area for funders, accounting for nearly a third of new commitments in 2024. Funders should feel comforted that a judge overseeing these disputes doesn’t think Congress should interfere in their deals.

I was able to chat with him after the panel about this subject, as well as about his move to Austin and his approach to nuisance filings in his courtroom.

LitFi Bill ‘Paused’

Rep. Darrell Issa’s litigation finance bill is on pause after facing bipartisan pushback at a Tuesday markup meeting, a source tells me.

The bill would require parties to disclose outside funding behind lawsuits and produce litigation finance agreements. It’s not just Democrats who are opposed. Some Republicans are pushing back, too, highlighting a growing divide among the GOP on this issue.

Meanwhile, a separate bill targeting foreign-based litigation funders, introduced by Rep. Ben Cline, is still moving forward after being recommended to the full house in November.

I’m hearing Issa’s bill could be revived in a future committee hearing, and I’ll be keeping a close eye on how all of this develops.

What I’m Reading

• A new bill was introduced in Florida that would bar funders from directing litigation and require disclosure of foreign funders, according to the Insurance Journal. Similar measures failed to pass in 2024 and 2025.
• Cameron Sholty, the executive director of the advocacy arm of The Heartland Institute, wrote a piece in Real Clear Policy opposing Rep. Darrell Issa’s litigation finance bill. He said the legislation would take away a tool used by underfunded plaintiffs to challenge powerful institutions.

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