Arguing Class Actions: Manchurian Misdirection—False Fears About Chinese Money in Litigation Funding -The most recent attacks on litigation funding (the benefits and detriments of which will be more comprehensively discussed in later columns), have taken a decidedly Eastern tilt. Indeed, Sen. Thom Tillis, R-North Carolina, and Rep. Darrell Issa, R-California, among others, have recently sought to “take on” litigation financing, introducing legislation designed to curb it through, e.g., substantial taxes on “qualified litigation proceeds” meant to make it much more costly for funders to invest in U.S. cases. So far, the legislation has failed—in the latest round, those taxes were removed from a final budget by the Senate parliamentarian. But the criticism has made waves, and, as is sadly typical of the times, carried a not-insignificant tinge of jingoistic paranoia. For example, on his website, Issa highlighted “national security concerns” that allegedly arise because “China-backed funders” were investing in U.S. cases. Issa proclaims that he wants to “advance fair and equal treatment by the justice system and deter bad actors from exploiting our courts.”
