House Commerce panel hears bill to require disclosure of third-party litigation financing

Representative William Cole opened a public hearing before the House Commerce Committee to introduce House Bill 733, a proposal to require disclosure and reporting of third‑party litigation financing (TPLF) in New Hampshire. "What is TPLF or third‑party litigation financing? It is when an investor helps finance a lawsuit in which the investor has no personal stake," Representative Cole said, noting the bill is modeled on a recent NCOIL draft and pointing committee members to specific pages and lines in the bill for definitions and disclosure requirements.

Cole told the committee the legislation is aimed at transparency: parties and courts currently may not know the identity of outside funders and, he argued, unregulated funders can attract hedge funds and foreign entities. He said TPLF has grown into a global industry and warned it can discourage settlements and contribute to "upward pressure on insurance costs," which he described as a state-level "tort tax." He directed the committee to the bill's proposed guardrails and mandatory disclosure sections (sponsor referenced pages 3, 6 and 9 of the draft).

Brandon Gerat, senior assistant attorney general and chief of the Consumer Protection and Antitrust Bureau at the New Hampshire Department of Justice, did…