Additional concerns were voiced regarding foreign adversaries, such as Russia and China, possibly manipulating litigation funders to finance lawsuits against American corporations or defense contractors. This strategy could grant them access to sensitive information for military espionage or to cripple American firms’ competitive edge.
To illustrate this point, Republican lawmakers cited the undisclosed $1.6 billion investment by an unnamed sovereign wealth fund into litigation funder Burford Capital.
Congress Litigation Ethics : American Industries Echo Concerns
Representatives from American industries echoed the concerns regarding litigation funding’s impact on their operations. Aviva Wein, representing Johnson & Johnson, was joined by Erik Milito, President of the National Ocean Industries Association, and Julie C. Lucas, Executive Director of MiningMinnesota.
Milito and Lucas contended that litigation funding has birthed a slew of “frivolous” lawsuits, hindering efforts to reduce the carbon footprint for oil and gas companies and the provision of rare earth metals crucial for electric vehicle production. According to Milito, these lawsuits are counterproductive to the goals of activist groups.
Democratic Pushback and Supreme Court Focus
On the other side of the aisle, Democrats used their time to condemn their Republican counterparts, accusing them of defending large corporations. They downplayed the significance of litigation funding compared to other pressing issues.
