II 

117TH CONGRESS 

1ST SESSION S. 840 

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 SENATE OF THE UNITED STATES 

MARCH 18, 2021 

Mr. GRASSLEY (for himself, Mr. CORNYN, Mr. TILLIS, and Mr. SASSE) introduced the following bill; which was read twice and 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’’. 


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

2 LITIGATION FUNDING IN CLASS ACTIONS. 

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

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘§ 1716. Third-party litigation funding disclosure 

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

8 shall— 

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

10 other named parties to the class action the identity 

11 of any commercial enterprise, other than a class 

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

13 to receive payment that is contingent on the receipt 

14 of monetary relief in the class action by settlement, 

15 judgment, or otherwise; and 

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

17 as otherwise stipulated or ordered by the court, any 

18 agreement creating the contingent right. 

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

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

21 ‘‘(1) 10 days after execution of any agreement 

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

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

24 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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


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1 States Code, is amended by adding at the end the fol2 lowing: 

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

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

4 LITIGATION FUNDING IN MULTIDISTRICT 

5 LITIGATION. 

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

7 amended— 

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

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

10 (2) by inserting after subsection (f) the fol11 lowing: 

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

13 proceedings conducted pursuant to this section, counsel 

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

15 to or directly filed in the proceedings shall— 

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

17 other parties the identity of any commercial enter18 prise, other than the named parties or counsel, that 

19 has a right to receive payment that is contingent on 

20 the receipt of monetary relief in the civil action by 

21 settlement, judgment, or otherwise; and 

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

23 as otherwise stipulated or ordered by the court, any 

24 agreement creating the contingent right. 


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

2 be made not later than the later of— 

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

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

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

6 to this section.’’. 

7 SEC. 4. APPLICABILITY. 

8 The amendments made by this Act shall apply to any 

9 case pending on or commenced after the date of the enact10 ment of this Act. 

Æ 


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