Earlier this month, a bill entitled the Fairness in Class Action Litigation Act of 2017 (H.R. 985) was introduced in Congress. The bill is aimed at reforming federal class actions in many ways. One of those ways would require that class counsel disclose third-party litigation funding.
The [Fairness in Class Action Litigation] Act would require class counsel to promptly disclose to the court and all other parties the identity of any third party, other than a class member or counsel of record, who has a contingent right to receive compensation from any settlement, judgment or other relief obtained. This provision, which is designed to reveal who really is driving the litigation and the reasons therefor, is likely to draw a sharp response from those in the burgeoning litigation funding business.
For more about the Fairness in Class Action Litigation Act, see the JD Supra article, “Big Changes Could Be Coming In Class Action Litigation” (the source of the above quoted excerpt), here.