OKLAHOMA CITY — An Oklahoma lawmaker wants to crack down on frivolous lawsuits by requiring more transparency.
HB 2619 would require, upon request, the disclosure of who is funding a lawsuit.
Representative Erick Harris (R-District 39), an attorney, filed the legislation. He says anonymous funders with no connection to cases fund them in exchange for a portion of the settlement. It is called “third-party litigation funding.”
Several states recently passed laws requiring disclosure, including Indiana, Louisiana, Montana, and West Virginia.
During a State Chamber of Commerce press conference, Rep. Harris said the TPLF practice bogs down the court system and impacts our economy.
“We don’t care about mom funding litigation for her daughter’s personal injury,” said Harris. “What we care about is a concerted effort by some individuals and entities to influence the business community by recruiting individuals to engage in frivolous litigation.”
Harris cited a study by the State Chamber Research Foundation that finds excessive tort claims result in a $3.7 billion annual loss in gross production in Oklahoma.
There is also a concern over national security. According to the U.S. Chamber of Commerce, foreign groups could be using TPLF to gain access to information or evade sanctions, but the extent of foreign funding is unknown due to the lack of transparency.
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