"Four U.S. Senate Republicans introduced a bill Tuesday proposing rules to force companies that invest in lawsuits to identify themselves and refrain from interfering with settlements, according to Legal Newsline."
"Affected businesses are called third-party litigation funders that provide money up-front to plaintiffs' lawyers in exchange for a percentage of whatever is recovered in court, the story states, and some feel that gives investors who aren't parties in court proceedings control over them."
"The Senate bill, known as the Litigation Funding Transparency Act, would prevent funders from influencing litigation strategy and settlement negotiations and viewing evidence under protective orders, according to Legal Newsline."
Four U.S. Senate Republicans introduced legislation to require companies that invest in lawsuits to identify themselves and avoid interfering with settlements. Third-party litigation funders provide up-front financing to plaintiffs' lawyers in exchange for a percentage of recoveries. Critics contend that such financing can give nonparties control over court proceedings. In one instance, Burford Capital was allowed to challenge a $50 million settlement between Sysco Corp. and Pilgrim's Pride. The proposed Litigation Funding Transparency Act would bar funders from influencing litigation strategy or settlement negotiations and from viewing evidence governed by protective orders. Sens. Grassley, Tillis, Kennedy and Cornyn sponsored the proposal.
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