Lawsuits
Senate GOP aims to reveal companies funding lawsuits
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.
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. In one instance, Burford Capital is allowed to challenge a $50 million settlement between Sysco Corp. and poultry producer Pilgrim’s Pride, the story says.
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.
Sens. Chuck Grassley (R-Iowa), Thom Tillis (R-N.C.), John Kennedy (R-La.) and John Cornyn (R-Texas) introduced the proposal.
Write a letter to the editor, share a story tip or update, or report an error.
