GOP Trifecta in Washington Could Put Litigation Finance Industry Under Pressure
"It's certainly not the highest priority right now, but there are a few angles that are maybe appealing to the [Trump] administration," Paul Haskel, a partner with Crowell & Moring, said of the likelihood of tighter regulation.
November 14, 2024 at 03:21 PM
8 minute read
What You Need to Know
- Litigation financing reform is on the radar of state and federal lawmakers along with the judiciary.
- Industry insiders say the opposition, often from Republicans, to litigation-funding reform is because opponents are conflating consumer and commercial litigation funding.
- It's currently unclear how Donald Trump views the litigation financing industry, and his transition team spokesperson side-stepped a question about the president-elect's position.
Third-party litigation financing has blossomed over the last decade, but the election of Donald Trump and forthcoming GOP control of both the House and the Senate has some legal industry insiders alert to the propsect of reforms that would ultimately throw a wrench into the business model, especially given that many supporters of greater regulation have thus far been Republicans.
Trump's administration is poised to be more business friendly, and some wonder whether this outlook will harm the litigation funding industry, since other pro-business, Republican-leaning organizations, such as the U.S. Chamber of Commerce, remain leery of third-party financing because it could potentially hurt business defendants.
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