Recent reportage has suggested that litigation funders are abandoning the U.S. District Court for the District of Delaware. The assertion, propagated through outlets such as Bloomberg Law and Law360, hinges on a standing order from Chief U.S. District Judge Colm Connolly. This order requires disclosure of third-party litigation funding arrangements. However, legal commentators Will Freeman and Sarah Tsou at Omni Bridgeway challenge this narrative. They argue that responsible funders do not shy away from operating in this jurisdiction, and multiple factors could be influencing a decrease in filings.
The complexities of disclosure requirements and their impact on litigation financing necessitate scrutiny. The assumption that funders are “fleeing” may overlook other considerations in the legal landscape that contribute to trends in court filings. As experts in third-party litigation finance, Freeman and Tsou highlight that the willingness to comply with disclosure requests differentiates committed funders. Understanding these dynamics is crucial for practitioners navigating the intricacies of litigation finance in Delaware federal court.