Our legal system is being abused, and American families and businesses are paying the price
Uncovering the hidden industry that drives up your costs.
What is TPLF, and how does it affect you?
Third Party Litigation Funding (TPLF) is a highly secretive, unregulated practice where outside investors, including hedge funds and foreign adversaries, finance lawsuits in exchange for a cut of any settlement or judgment. This industry has morphed into a profit-driven enterprise that puts our courts, economy, and national interests at risk – and drives up costs for everyone.
Investors and hedge funds should not be allowed to secretly bankroll and influence lawsuits for profit. It’s time to lift the curtain and expose who’s really pulling the strings behind these cases.
The Hidden Components of TPLF
Secret Investors
There are no uniform, mandatory disclosure requirements for litigation funding. Judges, defendants, and plaintiffs often don’t know if a foreign government or hedge fund is behind the curtain.
Profit Over Justice
Investors are motivated by profit, not justice. Funding may lead to the rejection of fair settlement offers and prolonged litigation as investors hope for a massive payout that benefits them, not the actual victim.
National Security Risk
Hidden investors could have growing ties to foreign entities, including those with adversarial interests. The Center for Strategic and International Studies has warned that foreign-backed lawsuits could be used to hamper U.S. businesses and give global competitors an unfair advantage.
Unregulated Growth
Unlike attorneys, these secret investors are not bound by ethical rules, allowing the litigation funding market to grow rapidly with almost no oversight.
Why It Matters to You:
The Cost of Abuse
When the legal system is abused, American families and small businesses foot the bill.
- The $5,000 “Tort Tax”: Excessive litigation drains $529 billion from the U.S. economy every year. This functions as a hidden tax passed down to you, costing the average household over $5,000 a year in higher costs for goods and services, including insurance. Without reform, families will continue to pay the cost for this abuse.
- Risk to Local Jobs: Small businesses cannot afford to fight deep-pocketed investors and hedge funds that secretly control lawsuits for profit.
The Solution:
Transparency
Justice should be transparent and accountable. To protect our courts and our wallets, we need to shine light on this secretive industry. By demanding transparency, we can stop foreign meddling and ensure our legal system serves people, not profiteers.