Third-party litigation funding (TPLF) is a highly secretive, unregulated practice where outside parties—including foreign entities—can finance lawsuits in exchange for a cut of any settlement or judgment.
TPLF turns our courtrooms into profit centers for foreign investors—at the expense of U.S. consumers, businesses, and our economy and weakens the integrity of our judicial system. Even worse, these investors often avoid paying U.S. taxes on their substantial gains.
Right now, there is virtually no oversight or disclosure. An independent study by Lawyers for Civil Justice shows funders control strategies and outcomes behind the scenes without accountability.
TPLF is growing
fast:
- $2.3 billion in new financing agreements in 2024
- $16.1 billion in total assets under management
- Contracts often give funders control over litigation decisions
Legal system abuse, such as TPLF, is a significant factor increasing the cost of living for everyone. TPLF contributes to the growth in lawsuits and increases litigation costs, both of which can increase the cost of goods and services, like insurance. In fact, legal system abuse costs the average household $5,215 annually.
Congress must act now.
Two bipartisan bills will bring transparency and protect Americans:
- H.R. 1109 – Litigation Transparency Act
- Requires disclosure of TPLF in all federal litigation.
- H.R. 2675 – Protecting Our Courts from Foreign Manipulation Act
- Requires disclosure of foreign TPLF and bans foreign governments and sovereign wealth funds from investing in TPLF.
VOTE YES on these bills. Help restore fairness, lower costs for U.S. consumers and businesses, and keep foreign influence out of America’s courts.