The ILR-Comments-to-ITC-on-Third-Party-Litigation-Funding-Final urges the U.S. International Trade Commission (ITC) to adopt and strengthen proposed rules requiring disclosure of third-party litigation funding (TPLF) in Section 337 investigations, arguing that transparency is necessary to identify conflicts of interest, reveal who may be influencing litigation and settlement decisions, improve settlement negotiations, and ensure the integrity of adjudicative proceedings. The document contends that the rapid growth of litigation finance, often conducted in secrecy, can allow funders to exert significant control over cases while remaining hidden from courts, opposing parties, and the public.
The comments further recommend expanding the proposal to require disclosure of related litigation funding arrangements, narrow exemptions for certain loans that could otherwise conceal TPLF activity, and mandate production of underlying funding agreements so the ITC can assess funders’ actual rights and influence. The filing also highlights concerns that undisclosed or foreign-backed litigation funding may pose national and economic security risks by providing foreign actors access to sensitive information or opportunities to influence U.S. businesses and critical industries through litigation, and concludes that robust disclosure requirements are essential to protect both the public interest and confidence in the ITC’s proceedings.
