Congressman Darrell Issa, chairman of the House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence and the Internet, has joined colleagues in reintroducing legislation to regulate third-party financed civil litigation.

The Republican who represents East County was joined by Rep. Scott Fitzgerald of Wisconsin and Rep. Mike Collins of Georgia in introducing the Litigation Transparency Act of 2025.

This proposed legislation — like that Issa also put forth in October 2024 — would require the disclosure of parties receiving payment in civil lawsuits.

Issa’s office said that in hundreds of cases yearly and with increasing frequency, civil litigation is being funded by undisclosed third-party interests as an investment for return — including from hedge funds, commercial lenders, and sovereign wealth funds operating through shell companies.

Third-party litigation funding also poses unique challenges in patent litigation cases, where investor-backed entities often seek large settlements against American companies, distorting the market and stifling innovation, according to the bills sponsors.

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