Litigation Funding Disclosure Bill Proposed in Senate

Parties in class action and multi-district litigation may have to disclose litigation funding agreements they enter, if a bill introduced May 10 by three GOP senators becomes law.

The U.S. Chamber of Commerce hailed the proposed legislation in a statement. But the bill does not go as far as some critics of the burgeoning litigation funding industry—including the Chamber—have advocated.

In particular, the bill’s disclosure provisions would only apply to two categories of cases: class actions and multi-district litigation cases. The Chamber and 29 other groups are currently pushing an amendment to the Federal Rules of Civil Procedure that would ...