I 117TH CONGRESS 1ST SESSION H. R. 2025 To amend title 28, United States Code, to increase transparency and oversight of third-party litigation funding in certain actions, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 18, 2021 Mr. ISSA introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 28, United States Code, to increase trans- parency and oversight of third-party litigation funding in certain actions, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Litigation Funding 4 Transparency Act of 2021’’. 5 SEC. 2. TRANSPARENCY AND OVERSIGHT OF THIRD-PARTY 6 LITIGATION FUNDING IN CLASS ACTIONS. 7 (a) IN GENERAL.—Chapter 114 of title 28, United 8 States Code, is amended by adding at the end the fol- 9 lowing: 10 VerDate Sep 11 2014 06:16 May 18, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2025.IH H2025 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2025 IH ‘‘§ 1716. Third-party litigation funding disclosure 1 ‘‘(a) IN GENERAL.—In any class action, class counsel 2 shall— 3 ‘‘(1) disclose in writing to the court and all 4 other named parties to the class action the identity 5 of any commercial enterprise, other than a class 6 member or class counsel of record, that has a right 7 to receive payment that is contingent on the receipt 8 of monetary relief in the class action by settlement, 9 judgment, or otherwise; and 10 ‘‘(2) produce for inspection and copying, except 11 as otherwise stipulated or ordered by the court, any 12 agreement creating the contingent right. 13 ‘‘(b) TIMING.—The disclosure required by subsection 14 (a) shall be made not later than the later of— 15 ‘‘(1) 10 days after execution of any agreement 16 described in subsection (a)(2); or 17 ‘‘(2) the time of service of the action.’’. 18 (b) TECHNICAL AND CONFORMING AMENDMENT.— 19 The table of sections for chapter 114 of title 28, United 20 States Code, is amended by adding at the end the fol- 21 lowing: 22 ‘‘1716. Third-party litigation funding disclosure.’’. VerDate Sep 11 2014 06:16 May 18, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H2025.IH H2025 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2025 IH SEC. 3. TRANSPARENCY AND OVERSIGHT OF THIRD-PARTY 1 LITIGATION FUNDING IN MULTIDISTRICT 2 LITIGATION. 3 Section 1407 of title 28, United States Code, is 4 amended— 5 (1) by redesignating subsections (g) and (h) as 6 subsections (h) and (i), respectively; and 7 (2) by inserting after subsection (f) the fol- 8 lowing: 9 ‘‘(g)(1) In any coordinated or consolidated pretrial 10 proceedings conducted pursuant to this section, counsel 11 for a party asserting a claim whose civil action is assigned 12 to or directly filed in the proceedings shall— 13 ‘‘(A) disclose in writing to the court and all 14 other parties the identity of any commercial enter- 15 prise, other than the named parties or counsel, that 16 has a right to receive payment that is contingent on 17 the receipt of monetary relief in the civil action by 18 settlement, judgment, or otherwise; and 19 ‘‘(B) produce for inspection and copying, except 20 as otherwise stipulated or ordered by the court, any 21 agreement creating the contingent right. 22 ‘‘(2) The disclosure required by paragraph (1) shall 23 be made not later than the later of— 24 ‘‘(A) 10 days after execution of any agreement 25 described in paragraph (1)(B); or 26 VerDate Sep 11 2014 06:16 May 18, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2025.IH H2025 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2025 IH ‘‘(B) the time the civil action becomes subject 1 to this section.’’. 2 SEC. 4. APPLICABILITY. 3 The amendments made by this Act shall apply to any 4 case pending on or commenced after the date of the enact- 5 ment of this Act. 6 Æ VerDate Sep 11 2014 06:16 May 18, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2025.IH H2025 kjohnson on DSK79L0C42PROD with BILLS