WASHINGTON (February 11, 2026) – Senator John Kennedy (R-La.), Chuck Grassley (R-Iowa), Thom Tillis (R-N.C.), and John Cornyn (R-Texas), members of the Senate Judiciary Committee, today introduced the Litigation Funding Transparency Act, which would require third-party funders of class action or mass tort lawsuits to disclose their payments.
“The American people deserve to know when corporations and foreign states pour money into class action lawsuits to influence outcomes. I’m proud to work together with my friend Chairman Grassley to introduce the Litigation Funding Transparency Act, which would lift the lid on the entities funding important legal battles in our country,” said Kennedy.
“Transparency brings accountability. For too long, obscure third-party litigation funding agreements have secretly funneled money into our civil justice system without any meaningful oversight. Americans should know if there are undue pressures at play that could needlessly prolong litigation, harm claimants’ interests or benefit foreign adversaries. The Litigation Funding Transparency Act strikes the right balance of sunshine, while protecting Americans’ access to justice,” said Grassley.
“Predatory litigation financing allows outside funders, including those backed by foreign governments, to profit off our legal system, driving up costs for families and delaying justice. This legislation will bring overdue transparency and accountability to these abusive practices,” said Tillis.
“By requiring the disclosure of third-party litigation funding, this commonsense bill would restore transparency and accountability to a system that has been plagued by dark money and foreign influence for far too long, and I’m proud to support it,” said Cornyn.
Currently, both foreign and domestic entities inject billions of dollars into U.S. third-party litigation financing to influence case outcomes.
The Litigation Funding Transparency Act would:
- Mandate disclosure of third-party litigation funding in mass tort or class action lawsuits.
- Require disclosure when the funder is a foreign state, foreign person, commercial enterprise or sovereign wealth fund that is not a party to the lawsuit in most cases.
The U.S. Chamber of Commerce, the American Property Casualty Insurance Association (APCIA), the National Insurance Crime Bureau (NICB), and the High Tech Inventors Alliance support the Litigation Funding Transparency Act.
“Outside financiers treat our court system like a casino. They drive up costs for consumers and put our national and economic security at risk. Americans should not be taken advantage of in our own courtrooms. All parties involved in class actions and multi-district litigation cases should know who is secretly bankrolling the cases and manipulating the outcomes for profit. Requiring the disclosure of these hidden financial interests will protect American businesses and safeguard the integrity of our justice system. The U.S. Chamber of Commerce thanks Senators Grassley, Tillis, Kennedy and Cornyn for their leadership on this critical issue and we encourage the Senate to advance this legislation,” said Stephen Waguespack, President of the U.S. Chamber of Commerce Institute for Legal Reform.
“APCIA strongly supports Senator Grassley’s Litigation Funding Transparency Act. Bringing transparency to third party litigation funding is a commonsense step that protects consumers and strengthens the integrity of our civil justice system. We applaud Senator Grassley’s leadership in advancing reforms that promote fairness and accountability,” said Sam Whitfield, Senior Vice President of Federal Government Relations and Political Engagement of APCIA.
“From on-the-ground investigations of criminal fraud rings to sophisticated analytics of litigation marketing campaigns, NICB has seen firsthand how third-party litigation funding can serve as a facilitator of insurance fraud, which increases costs for everyone. NICB applauds Chairman Grassley’s introduction of the Litigation Funding Transparency Act, which will help combat the improper incentives that attract fraudsters through improved transparency and accountability,” said David J. Glawe, President and Chief Executive Officer of the NICB.
“We thank Chairman Grassley for taking up this critically important issue and commend him for introducing legislation that would improve transparency regarding who is funding litigation in U.S. courts and whether these funders are improperly controlling plaintiffs’ litigation decisions. For too long, a lack of transparency has allowed funders to control litigation against U.S. companies from the shadows, while often themselves being funded or controlled by anonymous foreign investors and foreign governments’ sovereign wealth funds. Congress should act to require much needed transparency to prevent hedge funds and foreign interests from secretly manipulating our legal system to the detriment of U.S. companies and the broader U.S. economy,” said Dave Jones, Executive Director of the High Tech Inventors Alliance.
Kennedy has long targeted efforts to conceal third-party actors’ funding of lawsuits. In particular, Kennedy has championed his Protecting Our Courts from Foreign Manipulation Act, which would stop foreign governments and certain entities from covertly funding litigation in America’s courts.
The full bill text is available here.
