South OC Times

Congressman Darrell Issa, alongside colleagues Scott Fitzgerald and Mike Collins, has introduced HR 1109, known as the Litigation Transparency Act of 2025. This proposed legislation aims to mandate the disclosure of third-party entities that finance civil lawsuits. The bill targets undisclosed investments in litigation by hedge funds, commercial lenders, and sovereign wealth funds through shell companies.

Rep. Issa stated, "Our legislation targets serious and continuing abuses in our litigation system that distort our system of justice by obscuring public detection and exploiting loopholes in the law for financial gain." He emphasized the need for transparency when third-party investors are involved in federal court cases.

Rep. Fitzgerald highlighted his past efforts in Wisconsin to enforce similar disclosure laws at the state level. "These commonsense disclosure laws should similarly be required in federal courts," he said.

Rep. Collins expressed concern about protecting industries from unfair litigation practices, noting that "transparency in our legal system is essential."

The bill has garnered support from various organizations:

- The Consumer Technology Association (CTA) commented on how patent trolls exploit loopholes with frivolous lawsuits funded by hidden financiers.

- Google’s General Counsel Halimah DeLaine Prado supported the bill for promoting fairness and revealing potential conflicts of interest.

- The Consumer Choice Center emphasized the importance of transparency for accountability and fairness.

- The U.S. Chamber of Commerce praised Rep. Issa's leadership on this issue.

- National Association of Mutual Insurance Companies (NAMIC) noted how excessive litigation raises costs across America.

- American Property Casualty Insurance Association (APCIA) pointed out the impact on insurance affordability due to third-party funding.

- High Tech Investors Alliance (HTIA) warned against foreign adversaries exploiting U.S. courts.

- US-MADE Executive Director David Crane called for transparency to expose foreign interests targeting U.S. industries.

- American Trucking Associations (ATA) criticized predatory loans affecting plaintiffs unaware of high repayment rates.

- Reinsurance Association of America (RAA) urged Congress to pass this legislation swiftly.

- Self-Insurance Institute of America (SIIA) President Christopher Mohr condemned abusive patent litigation driven by non-practicing entities or 'patent trolls.'

- Uber applauded the reintroduction of reforms addressing lawsuit abuse.

The Litigation Transparency Act seeks to bring clarity to civil litigation financing, aiming to protect businesses and consumers from rising costs associated with secretive funding practices.