A new threat to US national and economic security is exposed by the US Chamber of Commerce Institute for Legal Reform newly released report. The report highlights the near-total lack of transparency concerning Third Party Litigation Funding.

TPLF is a murky multibillion-dollar global industry that started in Australia and has spread worldwide. It allows hedge fund managers from all over the world to secretly invest in US lawsuits in exchange for a cut of any award or settlement.

The report found a growing concern that a large volume of foreign-sourced money may be pouring into the US litigation system. The report says if there’s no disclosure of who’s funding a lawsuit, a foreign government could invest in US litigation for it’s own nefarious needs and desires by gaining access to sensitive or confidential information about US companies.

The report outlines a series of judicial, legislative, and federal agency solutions that would help curb the threat, the first of which is to require disclosure of all TPLF in all civil cases. For more information or to read the report in full, follow the link here.