Comer Calls for Transparency in Third Party Litigation Funding to Expose Activist and Foreign Influence - United States House Committee on Oversight and Accountability

WASHINGTON—House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) is continuing to investigate activist and foreign influence in third party litigation funding (TPLF) and is calling for disclosure requirements to ensure fairness and integrity in litigation decisions. In a letter to Chief Justice of the United States John Roberts, Chairman Comer requests that the Judicial Conference review the role TPLF plays in litigation and work towards enforcing transparency nationwide.

“The Committee has received evidence indicating that these investments often hurt, rather than help, litigants, and are sometimes being made by foreign actors. Third-party litigation funding has been used as a tool for ensuring access to justice, for parties who lack the financial resources to pursue meritorious claims. This mechanism, when used responsibly, has helped to provide necessary financial support to litigants who might otherwise have been unable to afford the costs associated with legal proceedings. However, it is now being abused by domestic and foreign actors,” wrote Chairman Comer. “I write to urge the Judicial Conference to examine these unaffiliated funders of litigation and to consider enacting rules requiring disclosures of third-party litigation funding to protect litigants and ensure a fair adjudication of claims.

At an Oversight Committee hearing in September 2023, members and witnesses highlighted how left-wing activists and foreign actors are funding litigation to hijack America’s legal system to influence policy decisions, determine outcomes, and cement a progressive agenda. Witnesses noted that these third party funded lawsuits are impacting the mining of critical minerals, development of new medications, energy production, and other key American industries. Too often these lawsuits delay critical projects and fail to prioritize Americans’ interests and members stressed that Congress must work to identify ways to improve transparency in litigation funding and ensure fairness in the legal system.

“The lack of oversight and transparency of these arrangements, even by judges, has significant impacts on legal proceedings. Transparency in TPLF is essential to maintain ethical standards and preserve the fairness and credibility of our legal system. Without transparency measures in place, there is a strong risk of profit-driven investment funds, both foreign and domestic, directly influencing litigation proceedings with aims that may not be fully aligned with the interests of claimants,” continued Chairman Comer. “Understanding the funding terms, sources, financial details, and potential conflicts of interest are vital to ensuring informed decision-making and guarding against perceptions of undue influence. Such transparency is pivotal in maintaining public trust in the legal profession, demonstrating a commitment to fairness and integrity in litigation decisions.”

Read the letter to Chief Justice Roberts here.