In what can be described as political self-immolation, Sen. Thom Tillis (R-NC) has introduced legislation that undermines a critical tool in our fight against woke capitalism and one of the few tools the average American consumer has to fight back against corporate goliaths. Tillis’ proposal to hogtie third-party litigation funding threatens to weaken the mechanisms we rely on to hold corporations accountable when they prioritize political and financial agendas over consumer interests.
Third-party litigation financing is a contract in which a third-party offers funding for a lawsuit in exchange for an interest in damages recovered. Without it, large corporations have the ability to crush opposition with high-priced lawyers and never-ending legal fees. But with litigation financing, everyday Americans can access the financial capital they need just to have a chance to fight back against companies that have increasingly participated in DEI-related discrimination, debanking and other aspects of the far-Left’s woke agenda.
While Sen. Tillis presents his bill unassumingly as a “tax,” in truth, it would impose a 41% punitive levy on all litigation financing, with the clear intent of financially disincentivizing investors from supporting lawsuits. If passed, the legislation would further empower large, woke corporations like Bank of America, which has been accused of debanking the accounts of Christian activist groups and conservatives; and Nationwide, which threatened ligation after it was called out for attempting to rebrand its continuing DEI policies under the banner of “belonging.”
But it doesn’t stop with the woke agenda. Large companies would love nothing more than to free themselves from the accountability that comes with litigation financing. For example, the notoriously woke ridesharing platform Uber has faced class action lawsuits from multiple women over allegations of sexual assault by drivers — including claims of kidnapping, rape, stalking, harassment, and other attacks. From 2017 to 2020, there were more than 9,998 cases of sexual assault on Uber’s U.S. platform. Without financial support, in many instances, victims would not have the means to face a company of Uber’s size. Not so coincidentally, Uber is at the forefront of a regulatory assault on third-party funded litigation and seeks to take away one of the few tools available to help these women fight back.
Perhaps no other sector has mobilized to oppose litigation finance to the extent of the insurance industry. Its two largest industry groups have a collective budget topping $93 million and a vested interest in knocking down lawsuits by manipulating the legislative system to choke off their funding. The National Association of Mutual Insurance Companies is pushing for nothing short of “an outright prohibition” of all litigation finance.
Insurance companies can deny claims for a number of valid reasons, but we’ve all heard horror stories of these companies refusing to pay what’s owed for legitimate claims. When faced with staggering financial payouts in the wake of natural disasters, for example, insurance companies have knowingly decided to act in bad faith by denying claims. Without third-party litigation financing, consumers facing a medical crisis or a devastating loss of property would lose access to the level of resources it takes to go after deep-pocketed bad actors.
Third-party litigation financing is vital in our fight against woke capitalism and something we at Consumers’ Research believe is worth protecting. Sen. Tillis’ needlessly broad legislation would overregulate the industry and further disadvantage Americans in the fight against corporate political activists. This legislation should be reconsidered. It’s imperative that we remain vigilant against such legislative actions that could erode the safeguards protecting American consumers from the woke agenda.
Will Hild is the Executive Director of Consumers’ Research, the nation’s oldest consumer advocacy organization.
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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