Litigation Funders Fight 41% Tax in Senate Bill, Warn of Harm

Litigation funders are mobilizing to strip a provision from the Senate version of President Donald Trump’s “big, beautiful” bill that would discourage lawsuit investments.

The language by Sen. Thom Tillis (R-NC) would tax litigation finance proceeds at 41% and “knock out our industry,” said Bill Farrell, co-founder of Longford Capital Management. Industry officials are courting senators and deploying lobbyists in a bid to remove the provision as the bill moves through the Senate.

The proposal “would fundamentally undermine access to justice” in the US, Paul Kong, executive director of the International Legal Finance Association, said in a statement. It “threatens ...