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HR 3512

Tackling Predatory Litigation Funding Act

119th Congress Introduced by Vern Buchanan and 29 co-sponsors

The Tackling Predatory Litigation Funding Act regulates third-party funding by requiring disclosures, capping amounts, and prohibiting predatory practices to protect judicial integrity.

Introduced in House
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Bill Summary · HR 3512

Summary of HR 3512 - Tackling Predatory Litigation Funding Act

Bill Number: HR 3512
Introduced On: May 20, 2025
Current Status: Introduced in House
Referred To: House Committee on Ways and Means

Purpose and Intent

The Tackling Predatory Litigation Funding Act aims to address concerns regarding the growing influence of third-party litigation funding in the U.S. legal system. The bill seeks to regulate and mitigate the potential negative impacts of predatory practices associated with litigation funding, which can lead to increased costs for defendants and a distortion of the judicial process.

Key Provisions

The bill includes several significant provisions designed to regulate litigation funding:

  1. Disclosure Requirements:

    • Litigation funders must disclose their involvement in cases, including the amount of funding provided and the terms of the funding agreement.

  2. Limitations on Funding:

    • The bill may impose caps on the amount of funding that can be provided for specific types of litigation, particularly in personal injury and class action cases.

  3. Transparency Measures:

    • Enhanced transparency measures will be required to ensure that all parties involved in litigation are aware of third-party funding arrangements.

  4. Prohibition of Certain Practices:

    • The bill may prohibit practices deemed predatory, such as funding arrangements that incentivize excessive litigation or that create conflicts of interest.

Affected Parties

The Tackling Predatory Litigation Funding Act is expected to impact various stakeholders, including:

  • Litigation Funders: Companies that provide financial support for legal cases will face new regulations and requirements.
  • Plaintiffs and Defendants: Individuals and entities involved in litigation may experience changes in how cases are funded and managed.
  • Legal Professionals: Attorneys may need to adjust their practices to comply with new disclosure and funding regulations.

Procedural Aspects

  • The bill was introduced in the House on May 20, 2025, and has been referred to the House Committee on Ways and Means for further consideration.
  • A companion bill, S 1821, has been introduced in the Senate, indicating a parallel effort to address similar issues in the upper chamber.

Conclusion

HR 3512 represents a legislative effort to regulate the burgeoning field of litigation funding, aiming to protect the integrity of the judicial process and ensure fair practices in legal funding arrangements. As the bill progresses through the legislative process, its provisions may evolve, reflecting ongoing discussions about the role of third-party funding in litigation.

Compiled from official sources — confirm details with the bill’s official record.

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