While we support the Consumer Litigation Funding Act (S1104A/A804) and its goal to protect consumers from predatory lending practices, the legislation, as currently written, lacks sufficient transparency and disclosure requirements to shield the civil justice system from undue influence and fraud. For these reasons, we urge Gov. Hochul to amend this bill to include transparency measures before signing it into law.

Disclosure of litigation funding contracts is essential to fairness, judicial oversight, and the integrity of our courts. Without full disclosure of litigation funding agreements, judges and defendants are unable to assess potential conflicts of interest or incentives that may prolong and distort proceedings. Recent reporting and criminal cases have revealed lawsuit financing’s role in massive slip-and-fall and construction insurance fraud schemes, including gruesome cases where vulnerable people are coerced into unnecessary surgeries in order to maximize the value of a lawsuit.

For these reasons, any final legislation on this issue must mandate disclosure to both the court and opposing parties of any third-party litigation funding agreements during discovery. Disclosure ensures that the court is aware of any non-party financial interests that could influence litigation strategies or settlement decisions.

Amending this legislation to include robust transparency measures will protect both plaintiffs and defendants, promote fairness, crack down on fraud, and strengthen confidence in New York’s justice system. Please take a moment to send a message to Governor Hochul, urging her to amend this legislation.