Earlier this month, several U.S. Senators introduced a bill that would require disclosure of third party litigation financing in class action lawsuits. The introduction of the U.S. Senate bill comes after Wisconsin enacted groundbreaking reforms in Act 235 to require notice of third party litigation financing at the state level.

The Litigation Funding Transparency Act, by Sens. Chuck Grassley (R-Iowa), John Cornyn (R-Texas), and Thom Tillis (R-North Carolina), would require disclosure within 10 days of any agreements for commercial enterprises to receive payments contingent upon the monetary outcome of an action. The bill aims to provide transparency of such third party litigation financing arrangements that can increase the cost of litigation and cause suits to be brought that would not otherwise have been financially justified.