Litigation Finance Has Become ‘Money Play,’ House Lawmakers Told

Litigation finance’s potential dangers came under a spotlight Wednesday at a US House committee hearing, where the panel’s chairman said many lawsuits are funded by left-wing activists aiming to hijack the US legal system.

The wide-ranging, nearly four-hour hearing, also featured discussions of the benefits of third-party funding in mass tort cases, as well as the use of the financing tool by nonprofit groups to change government legislation.

“Today is a first step to identifying how pervasive third party litigation funding is and how deep the abuses go,” said Representative James Comer (R-Ky), chairman of the House Committee on Oversight ...