A broad coalition of business and legal organizations has submitted comments supporting a proposed amendment to the Federal Rules of Civil Procedure that would require mandatory disclosure of third-party litigation funding (TPLF) agreements in federal civil cases. The coalition argues that recent developments—including cases where funders have allegedly exercised control over litigation—demonstrate the urgent need for transparency to ensure that outside financial interests do not unduly influence the course or outcome of lawsuits.
The document highlights the rapid growth and increasing sophistication of the TPLF industry, noting that billions of dollars are now invested annually in U.S. litigation, with funders often involved in a wide range of case types. The coalition expresses concern about the potential for manipulation of the judicial system, including the involvement of foreign actors through sovereign wealth funds, and points out that current disclosure practices are inconsistent and inadequate across different jurisdictions.
To address these risks, the coalition urges the adoption of a uniform rule requiring the automatic production of TPLF agreements at the outset of litigation. Such a rule would provide judges and opposing parties with critical information about the nature and extent of outside financial interests, help safeguard the independence of legal counsel, and promote fairness and transparency in the civil justice system.
