# Plain Language Summary: Litigation Transparency Act of 2025

This bill requires lawyers and parties involved in civil lawsuits to publicly disclose anyone who stands to make money if they win the case. Right now, there's no requirement to reveal these hidden financial interests, which means judges and opposing parties might not know that someone else is funding a lawsuit or betting on its outcome. Under this new rule, if you're involved in a lawsuit and someone has agreed to receive payment based on how the case turns out, you have to tell the court and the other side who that person is and show them the agreement.

The main purpose is to shine a light on what's sometimes called "litigation financing" or "third-party funding"—situations where investors, nonprofits, or other organizations fund lawsuits in exchange for a cut of any settlement or judgment. This practice has grown significantly in recent years, but it happens largely behind the scenes. The bill aims to make these arrangements visible so judges can see if there are outside financial pressures influencing how a case is being handled.

There are a few exceptions to keep the rule reasonable. You don't have to disclose someone who's simply loaning money that will be repaid with normal interest rates, or someone who's just being reimbursed for attorney's fees. The disclosure has to happen within ten days of signing any funding agreement, or when the lawsuit is filed—whichever comes later. If circumstances change or you realize your disclosure was incomplete, you're required to update it promptly.

This bill would apply to all civil cases filed after it becomes law, affecting anyone involved in litigation where outside funding is involved. While it doesn't prohibit litigation financing, it ensures that all parties and the judge know about these financial arrangements, which supporters argue will make the legal system more transparent and fair.