Tell Congress to Pass Legal System Abuse Reform Measures
Ongoing legal system abuse continues to threaten our country’s economy, businesses, and consumers.
We need your voice!
Send a letter today urging Congress to pass these critical reforms as quickly as possible.
Third party litigation funding (TPLF), also known as lawsuit lending, occurs when an unrelated third party funder or outside investor, including foreign interests or hedge funds with deep pockets, pays the legal fees for a lawsuit. If the lawsuit wins, the investor takes a massive cut of the settlement. Most times, defendants and courts do not know when a third party funder is involved.
Under current federal rules, lawyers and plaintiffs usually do not have to tell the judge or the public that an outside investor is pulling the strings. This continued exploitation of the legal system hurts everyday Americans, as hidden investors continue to turn the courts into a money-making machine.
The continued abuse of the legal system leads to:
– Higher Costs: People across the country are absorbing lawsuit payout costs in their insurance and everyday goods.
– Job Loss: With foreign investors and overseas competitors secretly funding lawsuits against American companies, domestic industries, and American jobs are not protected.
– Less Fairness: Justice should be about the facts of a case, not a return on investment for a global financier. When a court is flooded with unnecessary cases with investors looking to get paid, true access to justice is delayed.
– Transparency: Transparency is necessary as the judge and jury deserve to know who is profiting from a lawsuit.
We need to protect the integrity of our judicial system and stop this continued abuse. If passed:
– H.R. 1109 could require disclosure of any party receiving payment in federal lawsuits, as well as any TPLF agreement between “investors” and litigation parties.
– H.R. 2675 could increase the transparency and oversight of TPLF by foreign persons
and prohibit third party funding by foreign states and sovereign wealth funds.
– S. 3826 could require disclosure of any TPLF agreements for class action or mass tort.
The bill prohibits third party funders from exerting influence, control, or discretion
regarding litigation strategy or decision-making.