Courts Keep Rejecting Litigation Funding Discovery Campaign

Law360 (October 15, 2019, 1:44 PM EDT) -- In January 2017, the Northern District of California modified its standing order to require the disclosure of litigation funding in class, collective or representative actions. Detractors of the industry trumpeted this as a watershed moment in the debate over litigation funding disclosure.

Those with deep understanding of the industry knew better: Both before and ever since, courts have consistently rejected forays into these arrangements as contrary to bedrock tenets of discovery law.

The debate about whether courts will entertain such discovery absent extraordinary circumstances is essentially a dead letter. Recent case law on this issue drives the point home.

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