NFIB Michigan State Director Amanda Fisher praised the Michigan House Committee on Judiciary for passage of House Bill 5281, sponsored by Rep. Mike Harris, which would require reporting for those funding litigation in order to benefit financially.

In Michigan and many states across the nation, third party litigation funding (TPLF) operates with virtually no oversight.  House Bill 5281 requires funder disclosure and registration, prohibits funder influence on case outcomes so justice remains the guiding compass, bans foreign adversaries from funding lawsuits, and caps funder earnings from awards.

When NFIB members were asked “Should Michigan require disclosure of third parties who are financing lawsuits?”, 94% said YES.

“Placing guardrails on TPLF is crucial to maintaining fairness and integrity in our justice system. Without this important legislation, small businesses may be subject to meritless lawsuits as a money-making scheme,” said Amanda Fisher, NFIB Michigan State Director.

“Small businesses are particularly vulnerable to unscrupulous investors as they are less able to afford drawn out legal battles, leading to increased prices that are passed on to the consumer, job losses, and even small business closures.”