Advisory Committee Advances Litigation Funding Review

Key Takeaways

While the Committee continues to assess the feasibility and framework of a new federal rule governing TPLF, some courts have begun addressing the issue in their decisions and requiring disclosure of these types of arrangements.

During its semi-annual meeting on October 24, 2025, the U.S. Judicial Conference's Advisory Committee on Civil Rules ("Committee") agreed to continue studyingwhether a new federal rule should mandate the disclosure of third-party litigation funding ("TPLF"). This decision follows a year of stakeholder input to a TPLF subcommittee formed in October 2024 after more than 120 companies urged the Committee to address TPLF agreements, as previously reported in Re:Torts.