Litigation finance arrangements need to be disclosed
06th Jun 2017
With the support of more than two dozen business groups, the U.S. Chamber Institute for Legal Reform sent a letter to the office of the U.S. courts asking the committee on rules of practice and procedure to require disclosure of third-party financing arrangements in all civil cases filed in federal court, reports the Wall Street Journal.
The letter notes that a disclosure rule is necessary so that third-party financing doesn’t “continue to operate in the shadows”. It is also likely that more “ill-considered cases” will hit the courts as the industry evolves from financing single cases to investing in portfolio of cases.