Welcome to the Dark Side of Third Party Litigation Funding

Third-party litigation funding (TPLF) is a multibillion-dollar global industry that operates largely in secret and is designed to maximize profits for its investors at the expense of the legal system, defendants, plaintiffs, and consumers. TPLF allows hedge funds and other financiers, including sovereign wealth funds and foreign interests, to secretly invest in and control lawsuits within the U.S. in exchange for a percentage of any settlement or award. TPLF can drive up settlement costs and prolong litigation.

A new research paper from the U.S. Chamber of Commerce’s Institute for Legal Reform (ILR) features debunked harmful myths that are perpetuated by the TPLF industry. Here are some of these featured myths:

• Myth 1 – Litigation Funders Don’t Exert Control Over Litigation

• Myth 2 – TPLF Isn’t a National Security Risk

• Myth 3 – TPLF Has No Financial Impact on Plaintiffs

WY We Care: Your Wyoming Chamber of Commerce is a fierce advocate for government, legal, and economic transparency. Third-Party Litigation Funding (TPLF) poses significant risks to the state’s legal system and economy. TPLF allows outside investors, including foreign interests, to secretly fund lawsuits, which can inflate settlement costs and drag out litigation, making justice more expensive and less efficient. This could hurt Wyoming businesses, especially small ones, by increasing their legal risks and driving up the costs of defending against lawsuits. Additionally, TPLF could impact consumers by passing on these increased costs through higher prices for goods and services. Addressing TPLF transparency is key to protecting Wyoming’s legal and economic environment.