Bradley partner Tripp Haston was quoted in Law360 on states introducing legislation that would require litigants to disclose third-party funding, a trend that proponents — including insurers — say will have a positive impact on case settlements, while opponents argue it's unnecessary and unfair.
Haston has seen an uptick in litigation financing in many suits in which he's defending pharmaceutical or medical device companies. He said he supports state legislation that brings transparency to the industry.
"When it comes time to talking about how to resolve matters, having an understanding of who's really involved, what rights they have, is important," Haston said. "To really understand the market [of third-party litigation financing], there has to be transparency. Right now, it's a very murky place. I don't understand why anybody's afraid of the light unless they've got something to hide."
Currently, the Kansas bills are in committee. The Missouri bill was read for the second time in the state's House on February 24, and the Rhode Island bill was subject to a hearing Thursday.
Haston said these bills — while not passed — may be a "bellwether of things to come."
"The conversation is being started about more than mere disclosure and more about consumer protection and regulation of the industry in a way that we really haven't seen yet," he said. "Kansas and Missouri are the places to watch in the laboratory of public policy to see what happens."
The complete article, "Insurers Back States' Push For Suit Funding Transparency,” was published by Law360 on March 3, 2022 (login required).