To The Members of the United States House of Representatives:

The undersigned organizations strongly support H.R. 1109, the “Litigation Transparency Act of 2025.”

This critical piece of legislation seeks to enhance transparency and oversight of third party litigation funding (TPLF) by putting in place a uniform disclosure requirement of TPLF in all federal civil litigation. TPLF, an increasingly prevalent multi-billion-dollar industry, allows hedge funds, sovereign wealth funds, foreign entities and other financiers to secretly invest in lawsuits in exchange for a share of the settlement or award. H.R. 1109 is a necessary step towards protecting the integrity of our legal system by ensuring that justice is served without undue influence from undisclosed entities investing in U.S. litigation.

With limited exceptions, the Litigation Transparency Act mandates the disclosure of the presence of TPLF and the underlying funding agreements in federal civil litigation. Specifically, it requires parties to disclose the identity of any person that has a right to receive any payment contingent on the outcome of the litigation or group of actions of which the case is a part.  The legislation also requires the production of the relevant funding agreements for inspection by the court and the other parties in the case.

The lack of transparency in TPLF allows funders to exert undue influence or control over litigation strategies and settlements, often prioritizing their financial returns over the best interests of plaintiffs. In some instances, a plaintiff may not even know their lawyer has entered into a litigation funding agreement. The secrecy surrounding TPLF also allows for increased speculative litigation, inappropriately drives up settlement values and creates dangerous opportunities for foreign entities, including adversarial governments, to exploit the U.S. legal system for strategic and/or economic gain. These circumstances undermine the fairness and integrity of our judicial process, necessitating immediate legislative action.

We respectfully urge you to support and co-sponsor H.R. 1109. This legislation is a vital step toward ensuring that our legal system remains a tool for justice rather than being a playground for hidden financial interests.

Sincerely,
U.S. Chamber of Commerce