Federal suits would require third-party funder disclosures
In markupH.R. 1109Latest action
Sponsor: Darrell Issa · Representative · CA
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Official title: Litigation Transparency Act of 2025
119th Congress
Topics: Crime & justice
Introduced:
Read the official bill on Congress.govIn plain words
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Federal lawsuit parties must disclose any outside investor funding their case within 10 days of signing a funding agreement.
45-second read · 4 questions answered below
What does this do?
This bill requires anyone in a federal civil lawsuit to tell the court and the other side if an outside party — like a litigation finance company — has a financial stake in the outcome. The disclosure must include who that outside party is and what the financial agreement says. If the information changes or was incomplete, it must be updated.
Who does it affect?
This affects anyone involved in a federal civil lawsuit where an outside investor or financing company stands to profit from the result. Standard attorney's fees and simple loan repayments with interest below a set cap are not covered.
Why does it matter?
Courts and opposing parties would know when an outside financial interest exists in a case. Without this rule, that information could remain hidden from the people and institutions deciding or involved in the lawsuit.
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Where does it stand?
- IntroducedFeb 7, 2025
- House committeeYou are here · Nov 19, 2025
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Committee Consideration and Mark-up Session Held