Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

House Bill Would Require Transparency of Third-Party Payments in Litigation

"When the plaintiffs’ bar perverts civil litigation into a casino game of ‘jackpot justice,’ the costs are borne by everyone," said the American Trucking Associations in response to a bill to require funding disclosure in civil lawsuits.

February 12, 2025
House Bill Would Require Transparency of Third-Party Payments in Litigation

A U.S. House bill attempts to address litigation reform.

Image: HDT Graphic

3 min to read


A bill introduced in the U.S. House of Representatives this month would require the disclosure of parties receiving payment in civil lawsuits.

HR 1109, The Litigation Transparency Act of 2025, was introduced by Republican representatives Darrell Issa of California, Scott Fitzgerald of Wisconsin, and Mike Collins from Georgia.

Ad Loading...

Issa is chairman of the House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence and the Internet. 

Litigation reform is of keen interest to the trucking industry, as motor carriers are increasingly the targets of plaintiff lawyers.

In hundreds of cases every year and in greater frequency, civil litigation is being funded by undisclosed third-party interests as an investment for return, explained Issa in a news release — including from hedge funds, commercial lenders, and sovereign wealth funds operating through shell companies.

Ad Loading...

The bill would require disclosure of investors receiving payment based on the outcome of a case. 

'Exploiting Loopholes for Financial Gain'

“Our legislation targets serious and continuing abuses in our litigation system that distort our system of justice by obscuring public detection and exploiting loopholes in the law for financial gain,” Issa said.

“We fundamentally believe that if a third-party investor is financing a lawsuit in federal court, it should be disclosed rather than hidden from the world and left absent from the facts of a case.”  

Fitzgerald said when he was a state legislator in Wisconsin, he helped usher in laws to mandate such disclosure.

“This ensured parties were aware of all stakeholders who had a financial interest in the outcome of litigation.”

Ad Loading...

Rep. Collins added, “I have been advocating for tort reform for years and will continue the fight to ensure that lawsuits are fair and not driven by hidden third-party investors.”

Trucking, Business, Insurance Groups Applaud Litigation Reform Bill

Several business and trucking groups offered support of the bill, including the American Trucking Associations.

“When the plaintiffs’ bar perverts civil litigation into a casino game of ‘jackpot justice,’ the costs are borne by everyone — not just trucking companies, but consumers too in the form of higher insurance rates and higher prices for goods, said ATA senior vice president of legislative affairs Henry Hanscom.

“The secretive nature of these predatory loans can even surprise plaintiffs when they learn they must pay back the lenders at usurious rates… This reasonable reform would protect hardworking truck drivers and ensure justice and fairness drive accident litigation outcomes, not profits.”

The U.S. Chamber of Commerce said the legislation “will help protect the integrity of our judicial system by ensuring that outside financiers are not secretly directing or profiting from litigation they are funding.”

Ad Loading...

Several insurance groups praised the bill. 

For instance, the National Association of Mutual Insurance Companies said, “Frivolous and excessive litigation driven by investors has raised costs for Americans across the country, including the cost of insurance. When disputes end up in court, all the relevant parties should know everyone involved on each side.”

More Fleet Management

Graphic with light bulbs, HDT Truck Fleet Innovators logo, and the word Nominations
Fleet ManagementMay 15, 2026

Deadline Extended for HDT Truck Fleet Innovators Nominations

Heavy Duty Trucking has extended the deadline for nominations for its Truck Fleet Innovators awards. The deadline has been extended to May 22.

Read More →
Illustration of U.S. Supreme Court building and a truck crash

Supreme Court Ruling Puts Freight Broker Vetting Practices in Spotlight

The unanimous SCOTUS ruling in the closely watched Montgomery v. Caribe case allows state negligence claims against freight brokers that hire unsafe motor carriers, raising new liability and vetting concerns among brokers.

Read More →
Mobile tablet showing Motus screen against highway background with Motus logo

FMCSA’s Motus System Is Coming. What Fleets Need to Know Now

FMCSA's long-awaited registration system promises a single portal — and tighter fraud controls. And there are steps you need to take by May 14.

Read More →
Ad Loading...
Fleet Advantage Generative AI study.

Fleet Advantage: Fleets Embrace Generative AI, but Data Problems Limit Operational Gains

New Fleet Advantage research shows generative AI adoption has exploded among private fleets. But poor data integration and weak ROI tracking are preventing fleets from unlocking AI’s full operational and financial value.

Read More →
Phillips Connect extends Nussbaum trailer life.

How Phillips Connect Helped Nussbaum Transportation Double its Trailer Life

Seven years into deploying Phillips Connect’s smart trailer platform, Nussbaum Transportation has extended trailer life from 10 to 15 years.

Read More →
Lance Evans, Director of Safety at K&B Transportation.

Inside Modern Fleet Safety: AI, Cameras & Speed Control at K&B Transportation

How a former commercial vehicle enforcement officer turned director of safety at K&B Transportation is embracing real-world safety technology.

Read More →
Ad Loading...
TEN disaster prep.
Fleet ManagementMay 1, 2026

How Fleets Can Avoid Equipment Blind Spots in Disaster Response

When the unexpected happens, how you react to, and deal with operational blind spots is critical. Here’s how to keep you recovery on track, when nothing is normal.

Read More →
Illustration of cybersecurity images with "The Cyber Stop" text
Fleet Managementby Ben WilkensApril 30, 2026

AI Security Risks for Trucking Fleets: What to Know About Deepfakes and Agentic AI

As fleets adopt artificial intelligence for routing, maintenance, and load matching, new security risks are emerging. Learn where the vulnerabilities are and how to put the right controls in place.

Read More →
CargoNet 2026 Qi report.
Fleet Managementby News/Media ReleaseApril 24, 2026

Cargo Theft Incidents Fall in Q1, but Organized Crime and Impersonation Drive New Risks

CargoNet reports fewer supply chain crime events to start 2026. But losses hold steady as organized crime shifts tactics toward impersonation schemes and high-value goods.

Read More →
Ad Loading...
Illustration with trojan horse and lock with inside of cargo container in background
Fleet Managementby News/Media ReleaseApril 23, 2026

New Trojan Driver Cargo Theft Scam Bypasses Carrier Vetting Systems

Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.

Read More →