S1 E55 Funding Lawsuits Transparency Disclosure Fight

Send us Fan MailWe take a Deep Dive into Third Party Litigation Funding based on a formal letter sent to New York Governor Kathy Hochul urging crucial amendments to the proposed Consumer Litigation Funding Act (S.1104A / A.804C). A broad coalition of organizations representing business, housing, and industry sectors including the iFraud Foundation, insists that the legislation must be modified to mandate the disclosure of third-party litigation funding (TPLF) agreements to both judges and opposing parties. The coalition argues that TPLF currently operates without transparency, contributing to prolonged and costly legal disputes—termed "zombie litigation"—which ultimately drives up insurance costs. Furthermore, the letter explicitly claims that these undisclosed financial arrangements are connected to a "sprawling ecosystem" undergirding fraudulent civil litigation schemes involving organized crime and the staging of accidents. The organizations stress that transparency is essential for the court to expose potential fraud and enforce the bill’s consumer protection measures. They conclude that passing the legislation without mandatory disclosure would undermine judicial integrity and leave consumers unprotected from the excesses of the secretive lawsuit-funding industry.Support the show