Amid growing concerns expressed by the U.S. Chamber of Commerce over third-party litigation funding — including potential risks pertaining to hostile foreign entities — Indiana and West Virginia have catalyzed a legislative response. The state legislatures in these two regions have recently ushered bills into law that would place restrictions on the practice of third-party litigation funding.
The newly imposed legal measures attempt to address the apprehensions raised by the U.S. Chamber of Commerce. The central issue revolves around third-party entities who fund litigation — aggravated by the fact that some of these entities could be potentially belligerent sources located outside of national borders.
While comprehensive details on these new restrictions passed by Indiana and West Virginia are not immediately available, it is clear that the legislation aims to restrict external entities’ ability to fund litigation. This move is seen as a proactive measure to prevent erosion of lawful practices and maintain control of the domestic litigation landscape.
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