US Funding Bill Rattles Foreign Financiers: Litigation Finance

Happy Friday! In the US, “foreign” has become a bit of a dirty word — and funders abroad are not happy about it.

Rep. Ben Cline (R-Va.) is hopeful the full House will soon take up his legislation that requires disclosure from foreign funders and bans sovereign wealth funds and foreign governments from funding litigation.

Sound familiar? Various versions have bounced around Congress for years.

I dug into the potential impact if the bill becomes law, particularly around sovereign wealth funds. Some of the major players in the industry — from large investment managers to dedicated funders — have ties to these foreign funds (think Burford Capital, Omni Bridgeway, Fortress Investment Group, and BlackRock).

If the bill passes, funders might have to make a tough choice for future deals: cut ties with these funds or stop investing in US cases altogether.

Bloomberg Law subscribers can get this Litigation Finance newsletter in their inbox on Fridays. Sign up here.

What Else I’m Reading

• The Financial Times reports that Louisiana personal injury law firm Dudley DeBosier finalized a private equity deal for an MSO. The firm will spin off some of its assets into a separate business and sell a stake to Uplift Investors.
• Speaking of MSOs, McDonald Hopkins announced the expansion of its practice to include private investment in law firms such as MSOs. The firm’s litigation finance team represents funders, law firms, plaintiffs, and other parties.
• Burford Capital announced further expansion of its Asia footprint with its first hire in Korea. Elizabeth J. Shin was a partner at Lee & Ko and will lead Burford’s initiatives in Korea going forward.

Business & Practice

Former Sidley Leader Embraces ‘Future,’ Joining AI Law Firm

Sidley Austin’s former executive committee chair is pivoting from leading one of the world’s largest law firms to a two-month-old AI-native law firm.

Firms Are ‘Working for Free’ on Anthropic Settlement, Judge Says

A federal judge indicated three law firms seeking $75 million in attorneys’ fees from Anthropic PBC’s historic $1.5 billion copyright class action settlement with authors and publishers won’t receive any share of the pot.

Ex-Baker McKenzie Lawyer Sues Firm, DC Leader for Sexual Assault

A former Baker McKenzie associate is suing the firm over alleged sexual assault by the leader of its DC office, ratcheting up a fight that began when she went public with the accusations three months ago.

Commentary & Opinion

Florida’s Rule Is Subtly Pushing Back on Non-Lawyer Ownership

The Florida Supreme Court amended Rule 4-8.6, reinforcing limits on who controls legal judgment. This amendment comes as non-lawyer ownership, private equity investment, and platform-driven legal services are reshaping the legal profession.

Digital Asset Companies Struggle Under Patchwork State Licensing

Despite a thaw in the regulatory and political climate surrounding digital assets, companies offering digital asset services to consumers still face substantial compliance obstacles.

Copyright Law Set to Govern AI Under Trump’s Executive Order

As the federal government asserts primacy over AI governance, developers must demonstrate that their training corpora were acquired lawfully, licensed appropriately (unless in the public domain), and documented thoroughly.

A Bloomberg Law exclusive investigation has revealed that 41 people across the country have died after police or jails used a full-body restraint called The Wrap to subdue people.

Lawsuits, government records and more than 20 body camera and jail videos show several common errors when law enforcement officers use the device, which is designed to secure people from their shoulders to their feet with straps and buckles. Law enforcement agencies have paid out more than $9 million in settlements in seven Wrap-related lawsuits.

Officers and jail guards failed to follow the manufacturer’s instructions in 32 of the 41 deaths, according to Bloomberg Law’s analysis. Records detail many factors that played a role in the deaths. But each time, people became unresponsive in the device or soon after it was removed.

The company’s president and CEO, Charles Hammond, said in an email that the company has never faced a lawsuit “for a causational death or injury and we are not aware of any cases or incidents citing The Wrap as being the official/sole determined cause of injury or death.” Read More