FEDERALhearing transcript

Congressional Hearing on Third-Party Litigation Funding

Original title: UNSUITABLE LITIGATION: OVERSIGHT OF THIRD-PARTY LITIGATION FUNDING

January 1, 2023

litigation funding legal reform oversight corporate law national security

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The Frame

What this does

This hearing explores whether federal oversight is needed for , a practice where outside investors pay for legal costs in exchange for a portion of a potential settlement or court award.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Litigation funding companies

These companies provide the capital for lawsuits and are the subject of the committee's oversight inquiry.

Corporate defendants

Companies facing litigation may be impacted by changes in how lawsuits are funded and managed.

Legal professionals

Attorneys and law firms may be subject to new disclosure requirements or ethical guidelines regarding funding sources.

What changed

Last recorded activity January 1, 2023.

What's next

Next step not available in the current record.

Summary

The House Committee on Oversight and Accountability held a hearing on September 13, 2023, to examine the practice of . The committee heard testimony from legal experts and industry representatives regarding the potential risks and benefits of outside investors financing lawsuits.

Why It Matters

This hearing explores whether federal oversight is needed for , a practice where outside investors pay for legal costs in exchange for a portion of a potential settlement or court award.

Frequently Asked Questions

What is third-party litigation funding?

It is a practice where an entity that is not a party to a lawsuit provides capital to a plaintiff to cover legal expenses in exchange for a share of the final judgment or settlement.

Why is Congress investigating this?

The committee is examining whether this practice poses risks to the legal system, national security, or corporate accountability.

Key Facts

The hearing took place on September 13, 2023, in the Rayburn House Office Building.
The committee examined the oversight of third-party litigation funding.
Five witnesses provided oral testimony, including legal scholars and representatives from industry groups.
Numerous articles and statements for the record were submitted by committee members regarding the security and legal implications of litigation funding.
Questions for the record were submitted by various committee members to the witnesses following the hearing.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift80% confidence

Increased Scrutiny on Legal Finance

The committee is actively collecting evidence and expert testimony to build a case for potential federal oversight of the litigation funding industry.

Committee on Oversight and Accountability

Connected Entities

personErik Milito“President of the National Ocean Industries Association and hearing witness”Map →

personJulie Lucas“Executive Director of MiningMinnesota and hearing witness”Map →

personJames Comer“Chairman of the Committee on Oversight and Accountability”Map →

personMaya Steinitz“Professor at Boston University School of Law and hearing witness”Map →

personJamie Raskin“Ranking Minority Member of the Committee”Map →

personKathleen Clark“Professor of Law at Washington University in St. Louis and minority witness”Map →

personAviva Wein“Assistant General Counsel at Johnson & Johnson and hearing witness”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100

Significance60
How much this matters to a regular citizen
Controversy50
Intensity of disagreement among stakeholders
Entertainment20
Compellingness for a non-policy-wonk reader
Buzz30
Current news / social attention level

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