This bill adds a new section to chapter 111 of title 28 of the U.S. Code to require disclosure and limit some foreign third‑party litigation funding in federal civil cases. It defines key terms, including "foreign person," "foreign state," and "sovereign wealth fund." Parties and their counsel must disclose, in writing, the names and addresses (and if applicable citizenship or country of incorporation) of any foreign person, foreign state, or sovereign wealth fund that has a contingent right to receive payments tied to the outcome of a civil action or to related matters handled by the same counsel. Parties must also produce copies of any agreements creating those contingent rights and submit a certification saying whether the money used to satisfy the agreement has been or will be sourced, directly or indirectly, from a foreign person, foreign state, or sovereign wealth fund.
Disclosures must be made no later than the later of 30 days after an agreement is executed or the date the civil action is filed. A party that joins later must disclose within 30 days after being served or joined. Disclosures and certifications must be declarations under penalty of perjury and must be supplemented within 30 days after learning they were incomplete or inaccurate. The bill makes it unlawful for a party or counsel to enter into an agreement that would give a third party contingent payments paid from money sourced, in whole or in part, from a foreign state or a sovereign wealth fund; any such agreement would be null and void. Failure to disclose is treated as a required disclosure under Federal Rule of Civil Procedure 26(a) and may be subject to sanctions under Rule 37.
The Attorney General must report to the House and Senate Judiciary Committees within one year of enactment and annually after that on foreign third‑party litigation funding in federal courts. The report should include identities of foreign funders and sources, the judicial districts involved, estimates of total foreign‑sourced amounts (including by country), and summaries of case subject matter. The new rules apply to civil actions pending on or started on or after the date the law takes effect.
No publicly available information.
According to the text of the bill, its purpose is to increase transparency and oversight of third‑party litigation funding by foreign persons and to prohibit third‑party funding by foreign states and sovereign wealth funds. The bill also directs the Attorney General to report annually to Congress on foreign third‑party litigation funding in federal courts.
No publicly available information.