Legislation addressing foreign influence in lawsuits, which has been in the works for the last several months, was introduced in the House late last week and is moving quickly through the legislature. House Bill 1329 establishes limitations on third-party litigation funding, addressing growing concerns about the influence of foreign entities on civil litigation.
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.
The Colorado Chamber partnered with the Colorado Trial Lawyers Association to bring the bill forward in the legislature. HB 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. It also 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.
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 supported by the U.S. Chamber of Commerce.
HB 1329 received its first hearing in the House Judiciary Committee yesterday evening and passed unanimously. To read the Colorado Chamber’s full press release announcing the bill, please click here.