U.S. Chamber Welcomes Ohio’s Push Toward Greater Transparency in Third-Party Litigation Funding, Buckeye State Adds to Nationwide Momentum

WASHINGTON - The U.S. Chamber of Commerce Institute for Legal Reform released the following statement after Ohio Governor Mike DeWine signed comprehensive third-party litigation funding (TPLF) reform into law, a victory for civil justice reform in the Buckeye State. House Bill 105 will help protect Ohio families, consumers, and businesses from rising costs stemming from unregulated litigation financing.

"This is a win for Ohio families," said Stephen Waguespack, President of the U.S. Chamber of Commerce Institute for Legal Reform. "Consumers shouldn't be paying more because an outside financier, or even a foreign entity, saw a lawsuit as a profit opportunity. Ohio joins a growing number of states bringing transparency and accountability to this secretive industry. We applaud the Governor and Ohio legislature for advancing this effort, and the Ohio Chamber for their strong leadership in getting this bill across the finish line."

Third-party litigation funding is a key contributor to the rising costs of lawsuits.

This shadowy practice involves outside funders, who are sometimes foreign entities, who pour money into a lawsuit, oftentimes controlling litigation strategy and taking plaintiffs out of the driver's seat of their own cases. When these funders are involved, litigation lasts longer and gets more expensive. These costs are ultimately felt by families and consumers as the price of everyday goods and services increases.

For example, costs related to the litigation system in Ohio reached $2,583 per household in 2022.

HB 105 directly addresses the abusive litigation practices that have allowed these costs to escalate. The law covers both consumer legal funding and commercial litigation financing, requiring litigation funders to register with the state attorney general (AG) before operating in the state and mandating disclosure of any funding agreements to the AG following the resolution of litigation. To safeguard consumers, the law requires clear disclosures regarding funding terms, fees, and repayment limits, while expressly prohibiting deceptive practices as well as commissions and referrals to and from funders, attorneys, and healthcare providers.

The law also addresses national security concerns and prevents undue foreign influence by barring litigation funding agreements with foreign persons or entities. Additionally, funders are prohibited from influencing litigation strategy, settlement decisions, or attorney conduct. Finally, the law imposes caps on fees and charges by consumer funders, further protecting claimants from excessive costs.

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About the U.S. Chamber of Commerce Institute for Legal Reform

The U.S. Chamber of Commerce Institute for Legal Reform (ILR) is the country's most influential and successful advocate for civil justice reform, both in the U.S. and abroad.

About the U.S. Chamber of Commerce

The U.S. Chamber of Commerce is the world's largest business organization representing companies of all sizes across every sector of the economy. Our members range from the small businesses and local chambers of commerce that line the Main Streets of America to leading industry associations and large corporations.

They all share one thing: They count on the U.S. Chamber to be their voice in Washington, across the country, and around the world. For more than 100 years, we have advocated for pro-business policies that help businesses create jobs and grow our economy.