December 22, 2022
Today, Attorney General Sean D. Reyes joined 13 other state attorneys general in urging U.S. Attorney General Merrick Garland and the Department of Justice to break their silence on third-party litigation funding (“TPLF”). TPLF is a lucrative practice in the United States, valued between $2.3 and $5 billion, where an outside third party provides resources to fund civil disputes in exchange for a share of the recovery if successful. The attorney generals warn that foreign adversaries can spend money on American litigation with the intention of harming States and our country’s economic and national security.
The letter argues that “foreign countries such as China and Russia could use TPLF to fuel targeted lawsuits designed to weaken U.S. national defense companies in the business of protecting our natural security interests. Likewise, costly litigation aimed at sabotaging major energy sectors that are vital to our economy poses a direct threat to our economic security interests and global independence.”
The federal government has not addressed this threat or created a strategy to protect our nation’s court system from foreign interference. As a result, the 14 state attorneys generals are asking Attorney General Garland to communicate what they are doing to preserve the independence of our court system and assist in whatever way possible.
Virginia Attorney General Jason Miyares and Georgia Attorney General Chris Carr led the letter and were joined by the following states: Alabama, Arkansas, Indiana, Ohio, Kansas, Kentucky, Montana, Nebraska, South Carolina, Tennessee, and West Virginia.
Read the letter here.