Google Endorses New Bill for Transparency in Litigation Funding

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Key Takeaways

  • Google has endorsed a new bill that mandates transparency in litigation funding.
  • The bill, introduced by Rep. Darrell Issa, requires plaintiffs to disclose third-party financial backers.
  • Supporters believe this will ensure a fairer judicial process and reduce hidden influence.

Google has thrown its weight behind a bill requiring plaintiffs to disclose lawsuit financers, to create a more transparent legal process.

Bloomberg in its report confirmed that in addition to Google’s endorsement of this legislation, Amazon and several other companies, earlier this month, called on the administrative office for the U.S. courts to make litigation finance disclosures in federal civil cases compulsory.

The bill, introduced by California Republican Representative Darrell Issa on October 4, requires plaintiffs to disclose any financial backers involved in lawsuits.

The goal of the bill is to address concerns that hidden funding may lead to biased legal outcomes, giving wealthy backers undue influence over legal outcomes without facing accountability. The argument is that such financial backing can skew the judicial process in favor of those with more resources. 

This endorsement coincides with the U.S. Department of Justice’s (DOJ) recent court filing suggesting a potential breakup of Google’s core businesses. Following a ruling that found Google guilty of monopolistic practices in the search engine market, the DOJ is exploring structural remedies, which could include separating Google’s search operations from products like Android and Chrome.

Google’s support for Issa’s bill reflects a growing consensus on the need for transparency in litigation funding. If the bill eventually passes legislative panel beatings, it may significantly impact how lawsuits against Big Tech are pursued and defended in the U.S.