NEWSWEEK

What happened: Foreign adversaries have discovered a new way to insert themselves into American affairs: the courtroom. The third-party litigation funding industry is booming, with an estimate currently valuing the global litigation funding market at $17.5 billion. Read more

Tell me more: The third-party litigation funding industry operates in the Wild West, and funders ranging from sanctioned individuals to entities tied to adversarial governments are financing U.S. lawsuits to pursue their political or economic objectives. This largely undisclosed interference undermines the U.S. civil justice system by fueling hidden motives rather than the pursuit of fairness and justice. 

Why it matters: This growing industry—expected to hit $67B by 2037—is now a conduit for money laundering, corporate espionage and economic warfare. Without urgent reform and comprehensive disclosure laws, U.S. courts will become playgrounds to advance personal agendas. 

• For example, Chinese technology firm PurpleVine bankrolled at least four intellectual property lawsuits in U.S. courts against Samsung and a related subsidiary.   

TLR Thoughts: Third-party litigation funding is incentivizing excessive lawsuits that place more importance on extracting a sufficient return for investors rather than fairly compensating injured individuals. Personal injury trial lawyers and outside financiers should not be able to quietly steer cases without scrutiny. Safeguarding the justice system requires disclosure laws so that judges and juries know who is really behind the lawsuit.