H.R. 1109 — Litigation Transparency Act of 2025

This section establishes the short title of the Act as the “Litigation Transparency Act of 2025.”

This section establishes a new disclosure requirement in civil actions for any person, other than counsel of record, who has a contingent right to receive payment or another thing of value based on the outcome of the case or a group of cases. It requires a party or its counsel to disclose that person’s identity in writing to the court and all other named parties and to produce for inspection and copying any agreement creating the contingent right, including any ancillary agreement or document, unless the court orders otherwise. This section exempts from disclosure rights that are solely for: (1) repayment of loan principal; (2) repayment of loan principal plus interest capped at the higher of 7 percent or 2 times the annual average 30-year constant maturity Treasury yield for the year before the agreement was executed; or (3) reimbursement of attorney’s fees. It requires disclosures to be made not later than 10 days after execution of the agreement or at the time the action is filed, whichever is later, and requires a party or counsel to timely supplement or correct a disclosure if it becomes materially incomplete or incorrect. It also adds section 1660, “Third-party beneficiary disclosure,” to the table of sections for chapter 111 of title 28, United States Code.

This section applies the Act’s amendments to any civil action pending on the date of enactment or commenced after the date of enactment. (Thus, the changes would reach both ongoing lawsuits and new civil cases filed after enactment.)