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DENVER – The Colorado Chamber today announced legislation that will establish limitations on third-party litigation funding, addressing growing concerns about the influence of foreign entities on civil litigation. The legislation aims to protect businesses and consumers while increasing transparency regarding foreign funding in litigation. The Colorado Chamber has been a lead on the legislation in partnership with the Colorado Trial Lawyers Association.
House Bill 1329 limits foreign litigation funding, prevents foreign funder control or manipulation of litigation, and ensures that plaintiffs are aware of any outside influences on their cases. The bill requires disclosure to the Colorado Attorney General when foreign entities fund civil cases and prohibits the sharing of proprietary information or sensitive national security information.
“Transparency in foreign third-party litigation funding is essential for maintaining a fair legal system,” said Colorado Chamber President and CEO Loren Furman. “When all parties are aware of who is funding and potentially controlling a lawsuit, it ensures that decisions are made in the best interest of justice. This legislation recognizes the major risks foreign third-party influence poses to Colorado’s economic stability and national security, and implements the necessary safeguards to help protect the integrity of our judicial system.”
“As advocates for access to justice and a fair legal system, CTLA supports efforts that protect the integrity of Colorado’s courts,” said Julie Whitacre, Executive Director of the Colorado Trial Lawyers Association. “This legislation strikes the right balance—improving transparency and accountability in litigation funding without limiting the ability of Coloradans to seek justice. We’re proud to work with the Colorado Chamber to address foreign influence while preserving the rights of individuals in our civil courts.”
Foreign third-party litigation funding is a multibillion-dollar global industry that allows foreign entities to invest in lawsuits in exchange for a percentage of any settlement or judgment. These arrangements compromise the fairness of the judicial process by allowing foreign entities undue influence over litigation decisions often to the detriment of the courts, defendants and plaintiffs.
Similar legislation has been implemented in other states, including Louisiana, and action is also being taken at the federal level with the recent introduction of the Litigation Transparency Act.
To view HB 1329, please click here.
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The Colorado Chamber of Commerce champions free enterprise, a healthy business environment and economic prosperity for all Coloradans. It is the only business association that works to improve the business climate for all sizes of business from a statewide, multi-industry perspective. What the Colorado Chamber accomplishes is good for all businesses, and that’s good for the state’s economy. It was created in 1965 based on the merger with the Colorado Manufacturers’ Association.
The Colorado Trial Lawyers Association (CTLA) is dedicated to protecting people and righting wrongs. With more than 1,200 members statewide, CTLA supports the civil plaintiff attorneys who fight for everyday Coloradans. Through advocacy, education, and a deep commitment to public safety, CTLA stands up for your rights when it matters most.