S. 3826 — Litigation Funding Transparency Act of 2026

This section establishes disclosure requirements for third-party litigation funding in covered civil actions—defined as civil actions in multidistrict litigation proceedings under 28 U.S.C. §1407, class actions, or coordinated or consolidated proceedings in district court involving 100 or more civil actions—by adding a new section 1747 to chapter 115 of title 28, United States Code. The section defines a third-party funder as any commercial enterprise, foreign state, foreign person (i.e., non-U.S. person excluding foreign states or sovereign wealth funds), or sovereign wealth fund, other than counsel of record, that provides monetary support for initiating or litigating the action (without being a named party or subsidiary) or has a right as a nonparty to receive proceeds, fees, or other value exceeding what it provided. In any covered civil action, a party or counsel of record must (1) disclose in writing to the court and all other named parties the identity of any third-party funder; (2) disclose whether the funder is a foreign state, foreign person, sovereign wealth fund, or commercial enterprise controlled or owned by such an entity (using the Foreign Agents Registration Act definition of foreign principal at 22 U.S.C. §611); (3) produce for inspection any funding agreement; and (4) transmit disclosures under (2) or productions under (3) to the Administrative Office of the United States Courts. Disclosures are due no later than the later of 10 days after executing a funding agreement or service of the action, with a continuing duty to supplement or correct material inaccuracies in a timely manner or as ordered by the court.