Class Action Litigation Act Would Require Disclosure of Litigation Funding in Class Action Cases

The House Judiciary Committee recently approved the newly introduced Class Action Litigation Act of 2017. It is known that the Act was proposed by House member Bob Goodlatte (R-Va) in an attempt to provide greater protections to plaintiffs in class action cases, particularly with respect to abuses of the class action system by class counsel.

What does the Class Action Litigation Act require?

Notably, the Act would require class counsel to disclose any third-party litigation funding. The idea is that disclosure would reveal who is really driving the litigation. Though the Act has yet to be voted on by the House or the Senate but has received support from the Chamber of Commerce and other organizations.

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Reviewed by Marc Lesnick

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