Issa's Latest Litigation Funding Bill Debated in House Judiciary Without Reaching Vote

"The TPLF bill closely tracks a bill last considered in November 2025, the " Litigation Transparency Act of 2025," meant to curb the use of third-party litigation funding in U.S. lawsuits, which failed to get to a vote at the time and was later pulled. Both the Protecting TPLF From Abuse Act and the Litigation Transparency Act were introduced by Representative Darrell Issa (R-CA) and would require any party in a civil action to disclose third-party sources of funding in most cases."

"According to a press release about the bill issued last year, Issa said the legislation "targets serious and continuing abuses in our litigation system that distort our system of justice by obscuring public detection and exploiting loopholes in the law for financial gain... We fundamentally believe that if a third-party investor is financing a lawsuit in federal court, it should be disclosed rather than hidden from the world and left absent from the facts of a case.""

The House Judiciary Committee considered the Protecting Third Party Litigation Funding (TPLF) From Abuse Act during a markup hearing that also focused on escalating immigration enforcement operations. The bill did not reach a committee vote and was later pulled. The TPLF proposal closely tracks the Litigation Transparency Act of 2025 and would require parties in most civil actions to disclose third-party sources of funding. Representative Darrell Issa introduced both measures and described the legislation as targeting abuses that obscure public detection and exploit legal loopholes for financial gain. Concerns about disclosure language prompted negotiations and the latest bill adds in camera judicial review language.

Read at IPWatchdog.com | Patents & Intellectual Property Law