Call to Action: Transparency Reform for Third-Party Litigation Funding
September 15, 2026
Michigan lawmakers are considering HB 5281, legislation aimed at increasing transparency around Third Party Litigation Funding (TPLF).
TPLF occurs when an outside investor finances a lawsuit in exchange for a portion of any settlement or judgment. Michigan currently lacks adequate safeguards to ensure transparency and prevent abuse for these arrangements, and it is creating a harmful legal environment for small businesses. HB 5281 would establish disclosure requirements for litigation funders, prohibit foreign adversaries from participating in litigation financing, limit funder influence over legal decisions, and create additional protections intended to preserve confidence in Michigan’s judicial system.
The issue affects more than courtroom participants – opaque litigation financing can contribute to higher legal costs, increase uncertainty for employers, and ultimately impact consumers and Michigan’s business climate.
Lawmakers are hearing from a variety of interests on this issue. That’s why grassroots participation is critical. By contacting your legislators, you can help demonstrate that transparency, fairness, and accountability in the civil justice system matter to Michigan’s job creators and small-business community.