3rd Party Litigation Funding Must Be Disclosed Under Recent New Jersey Local Rule

On June 21, 2021, the U.S. District Court for the District of New Jersey announced that it would amend Local Rule 7.1.1 to require disclosure of any third-party litigation funding received by any party. The rule requires that, within 30 days of filing an action or of transfer into the district, all parties file a statement identifying "any person or entity that is not a party and is providing funding for some or all of the attorneys' fees and expenses" in exchange for either "a contingent financial interest based upon the results of the litigation" or "a non-monetary result" not in the nature of a monetary loan.

The statement must contain the identity of the funder, including the name, address, and (if the funder is a corporate entity) its place of incorporation. Parties must also disclose whether the funder's approval is necessary for "litigation decisions or settlement discussions." If the funder's approval is necessary, the nature of the terms and conditions of