Third-Party Funding for Litigation Faces States’ Scrutiny (1)

Aug. 5, 2024, 9:14 PM UTCUpdated: Aug. 6, 2024, 12:34 AM UTC

Some states are moving to increase transparency over who is financially backing lawsuits as legislators weigh the growth of third-party litigation funding.

The funding mechanism, in which outside parties invest in a lawsuit for a stake in the settlement or judgment, is “reshaping every aspect of litigation,” Phil Goldberg, managing partner at Shook, Hardy & Bacon LLP, told attendees Monday at the National Conference of State Legislatures legislative summit in Louisville, Ky. Johnson & Johnson sponsored the lunch served before the session.

Litigation funders are increasingly pouring money into mass tort cases against J&J and other large companies. Groups like ...

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