Litigation Funding Transparency Act of 2026

Key Points

• This bill requires lawyers and people involved in large lawsuits, like class actions, to tell the court if an outside investor is paying for their legal fees. This includes disclosing the names of any companies or foreign governments that are providing money in exchange for a share of the final payout.
• The policy specifically targets 'third-party funders,' which are groups that pay for a lawsuit but aren't actually part of the case. It requires these funders to hand over their contracts so the judge and the other side can see the details of the financial deal.
• To protect legal fairness, the bill bans these outside investors from making decisions about legal strategy or settlement amounts. It also prevents them from seeing private or secret documents shared during the case unless a judge specifically allows it.
• The government would be required to post public reports every four months listing any foreign governments or foreign companies that are funding U.S. lawsuits. These reports would include the names of the funders, the specific cases they are involved in, and how much money they have provided.

Votes

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Related Bills

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