Recent court cases in the US have repeatedly raised the issue of disclosure for litigation funding, with growing calls across the judicial system to increase transparency in legal proceedings where third-party funding is present. The spotlight on disclosure is only set to intensify, with ongoing studies by federal agencies and requests by industry bodies for changes to disclosure requirements.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Recent court cases in the US have repeatedly raised the issue of disclosure for litigation funding, with growing calls across the judicial system to increase transparency in legal proceedings where third-party funding is present. The spotlight on disclosure is only set to intensify, with ongoing studies by federal agencies and requests by industry bodies for changes to disclosure requirements.
An article by Bloomberg Law covers the latest developments in this area, highlighting the request by Lawyers for Civil Justice to the Advisory Committee on Appellate Rules to enable judges to seek further disclosure around case funding to ensure there are no conflicts of interest. In particular, this group highlights the dangers of judges themselves being party to conflicts of interests, where their personal investments may unknowingly include litigation funders
Additionally, the Government Accountability Office (GAO) is looking to further its study into the role of funders in US litigation. In a conference call planned for this Tuesday, the GAO is aiming to speak with industry figures in order to gain a broader and more detailed understanding of the breadth and volume of cases funders are involved with, as well as the financial return they are receiving from these investments.
