Litigation Transparency Act of 2025

Key Points

• This bill requires people involved in federal lawsuits to tell the court and the other side if they have outside financial backers. If someone else has a right to get paid based on whether the case wins or loses, their identity must be shared in writing.
• Lawyers would have to turn over the actual funding contracts and any related documents for the other side to inspect. This must be done within 10 days of signing a funding deal or at the time the lawsuit is officially started.
• The rules do not apply to standard bank loans with low interest rates or simple payments for lawyer fees. It specifically targets investment deals where outside groups fund a case in exchange for a portion of the final settlement or jury award.
• Supporters believe this will stop secret investors from unfairly influencing legal cases or driving up costs. If the bill becomes law, it will apply to all new lawsuits and any cases that are already active in the court system.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.