Advocacy against class actions: Manchurian misdirection – false fears about Chinese money in litigation financing

The most recent attacks on litigation finance (the pros and cons of which will be discussed in more detail in subsequent columns) have taken a decidedly Eastern turn. Indeed, Senator Thom Tillis, Republican of North Carolina, and Representative Darrell Issa, Republican of California, among others, have recently sought to “take over” litigation financing, introducing legislation intended to curb it, for example by imposing substantial taxes on “qualified litigation products” intended to make it much more expensive for funders investment in American business. So far, the legislation has failed: in the last round of measures, these taxes were removed from the final budget by the Senate parliamentarian. But the criticisms made waves and, as is unfortunately typical of the times, they were tinged with a significant tinge of chauvinistic paranoia. For example, on his website, Issa highlighted the “national security concerns” that would arise from “China-backed donors” investing in U.S. files. Issa proclaims that he wants to “promote fair and equal treatment by the justice system and deter bad actors from exploiting our courts.”