A bill approved this week by the House of Representatives would require class action attorneys to disclose to federal courts the fact that a third-party litigation funding company is providing monies for the lawsuit.
It’s a bill that has not drawn much, if any, opposition from the litigation funding industry, which has opposed other disclosure requirements.
But as the National Law Journal reports, the lack of opposition may be due to a number of reasons, including the fact that class actions are not currently a significant part of the litigation funding business, as well as the possibility that some favor certain types of regulation of the business, in order to legitimize it.
The story, Why Lit Funders Didn’t Lobby to Stop Class Action Bill, is available in full here. An earlier Secondary Insurance Market Blog post on the bill, the Fairness in Class Action Litigation Act of 2017 (H.R. 985), is available here. For more details about the bill, see this JD Supra article, House Passes Fairness In Class Action Litigation Act of 2017, here.