NJ Fed. Court Should Ditch Litigation Funding Disclosure Plan

Law360 (June 17, 2021, 3:07 PM EDT) -- As the use of litigation finance has become more widespread, so too has the debate over whether — and to what extent — its use should be disclosed.

The latest chapter is unfolding in New Jersey, where the U.S. District Court for the District of New Jersey has proposed a new local rule that would require automatic disclosure of third-party litigation funding.

If enacted, the rule would mark a sharp departure from existing disclosure requirements nationwide, as well as the weight of federal authority holding that funding arrangements are not relevant to the substance of a dispute and thus, not discoverable....

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