This bill, titled the "Protecting Third Party Litigation Funding From Abuse Act," aims to enhance transparency and oversight in civil actions by amending title 28 of the United States Code. Its core purpose is to protect legal proceedings from manipulation by requiring disclosure of third-party financial interests. The legislation mandates that parties disclose the identity of any person or entity , other than counsel, that has a legal right to receive payment contingent on the outcome of a civil action, such as a settlement or judgment. Parties must also produce the underlying funding agreements to the court for in camera review, and subsequently to other named parties, subject to protective orders and privilege limitations. Key exceptions to these disclosure requirements include standard loan repayments, loans with interest rates below a specified cap, reimbursement of attorney's fees to counsel, and grant reimbursements. Additionally, the identities of donors, members, or associates of a third-party funder are generally protected unless they themselves possess a direct financial right to the litigation's outcome. These disclosures must be made promptly and updated as needed, applying to all civil actions pending or commenced after the bill's enactment.
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Timeline
Introduced in House
Referred to the House Committee on the Judiciary.
Introduced in House
Referred to the House Committee on the Judiciary.
Law
Protecting TPLF From Abuse Act
USA119th CongressHR-7015| House
| Updated: 1/12/2026
This bill, titled the "Protecting Third Party Litigation Funding From Abuse Act," aims to enhance transparency and oversight in civil actions by amending title 28 of the United States Code. Its core purpose is to protect legal proceedings from manipulation by requiring disclosure of third-party financial interests. The legislation mandates that parties disclose the identity of any person or entity , other than counsel, that has a legal right to receive payment contingent on the outcome of a civil action, such as a settlement or judgment. Parties must also produce the underlying funding agreements to the court for in camera review, and subsequently to other named parties, subject to protective orders and privilege limitations. Key exceptions to these disclosure requirements include standard loan repayments, loans with interest rates below a specified cap, reimbursement of attorney's fees to counsel, and grant reimbursements. Additionally, the identities of donors, members, or associates of a third-party funder are generally protected unless they themselves possess a direct financial right to the litigation's outcome. These disclosures must be made promptly and updated as needed, applying to all civil actions pending or commenced after the bill's enactment.