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 transparency and oversight of third-party litigation funding 

in certain actions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Litigation Funding 

5 Transparency Act of 2021’’. 

6 SEC. 2. TRANSPARENCY AND OVERSIGHT OF THIRD-PARTY 

7 LITIGATION FUNDING IN CLASS ACTIONS. 

8 (a) IN GENERAL.—Chapter 114 of title 28, United 

9 States Code, is amended by adding at the end the fol10 lowing: 


kjohnson on DSK79L0C42PROD with BILLS
2 

•HR 2025 IH

1 ‘‘§ 1716. Third-party litigation funding disclosure 

2 ‘‘(a) IN GENERAL.—In any class action, class counsel 

3 shall— 

4 ‘‘(1) disclose in writing to the court and all 

5 other named parties to the class action the identity 

6 of any commercial enterprise, other than a class 

7 member or class counsel of record, that has a right 

8 to receive payment that is contingent on the receipt 

9 of monetary relief in the class action by settlement, 

10 judgment, or otherwise; and 

11 ‘‘(2) produce for inspection and copying, except 

12 as otherwise stipulated or ordered by the court, any 

13 agreement creating the contingent right. 

14 ‘‘(b) TIMING.—The disclosure required by subsection 

15 (a) shall be made not later than the later of— 

16 ‘‘(1) 10 days after execution of any agreement 

17 described in subsection (a)(2); or 

18 ‘‘(2) the time of service of the action.’’. 

19 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

20 The table of sections for chapter 114 of title 28, United 

21 States Code, is amended by adding at the end the fol22 lowing: 

‘‘1716. Third-party litigation funding disclosure.’’. 


kjohnson on DSK79L0C42PROD with BILLS
3 

•HR 2025 IH

1 SEC. 3. TRANSPARENCY AND OVERSIGHT OF THIRD-PARTY 

2 LITIGATION FUNDING IN MULTIDISTRICT 

3 LITIGATION. 

4 Section 1407 of title 28, United States Code, is 

5 amended— 

6 (1) by redesignating subsections (g) and (h) as 

7 subsections (h) and (i), respectively; and 

8 (2) by inserting after subsection (f) the fol9 lowing: 

10 ‘‘(g)(1) In any coordinated or consolidated pretrial 

11 proceedings conducted pursuant to this section, counsel 

12 for a party asserting a claim whose civil action is assigned 

13 to or directly filed in the proceedings shall— 

14 ‘‘(A) disclose in writing to the court and all 

15 other parties the identity of any commercial enter16 prise, other than the named parties or counsel, that 

17 has a right to receive payment that is contingent on 

18 the receipt of monetary relief in the civil action by 

19 settlement, judgment, or otherwise; and 

20 ‘‘(B) produce for inspection and copying, except 

21 as otherwise stipulated or ordered by the court, any 

22 agreement creating the contingent right. 

23 ‘‘(2) The disclosure required by paragraph (1) shall 

24 be made not later than the later of— 

25 ‘‘(A) 10 days after execution of any agreement 

26 described in paragraph (1)(B); or 


kjohnson on DSK79L0C42PROD with BILLS
4 

•HR 2025 IH

1 ‘‘(B) the time the civil action becomes subject 

2 to this section.’’. 

3 SEC. 4. APPLICABILITY. 

4 The amendments made by this Act shall apply to any 

5 case pending on or commenced after the date of the enact6 ment of this Act. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS