What's Happening?
A new litigation finance trade group, the American Civil Accountability Alliance, is set to launch as the industry faces increased scrutiny and potential regulatory challenges on Capitol Hill. Led by lawyers
Erick Robinson and Charles Silver, the group aims to lobby against efforts to restrict litigation finance, emphasizing the role of outside funding in providing access to justice against large corporations. This development follows a year where litigation funders narrowly avoided a tax bill that could have severely impacted the industry. The alliance will join the International Legal Finance Association in representing the $16.1 billion industry, countering efforts by the US Chamber of Commerce and insurance industry lobbyists pushing for regulation.
Why It's Important?
The formation of this new group highlights the ongoing debate over the role of litigation finance in the U.S. legal system. Proponents argue that it levels the playing field for smaller litigants against well-funded entities, while critics claim it encourages frivolous lawsuits and increases costs for businesses. The outcome of this regulatory battle could significantly impact the availability and cost of litigation finance, affecting both plaintiffs and defendants in commercial disputes. The group's efforts to influence legislation could shape the future landscape of legal funding and access to justice in the U.S.
What's Next?
The American Civil Accountability Alliance plans to recruit members and hire a DC-based lobbyist to strengthen its advocacy efforts. As legislative battles continue, particularly with the potential reintroduction of a tax bill by Sen. Thom Tillis, the group will likely focus on building alliances and presenting arguments to lawmakers about the benefits of litigation finance. The outcome of these efforts could influence future regulatory frameworks and the industry's ability to operate without restrictive measures.
