Federal suits would require third-party funder disclosures

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.

Where does it stand?