H.R. 2675 — Protecting Our Courts from Foreign Manipulation Act

This section adds a new section 1660 to chapter 111 of title 28, United States Code, to define terms and impose disclosure requirements and prohibitions on third-party litigation funding from foreign sources in any civil action. (1) Defines "foreign person" as any non-U.S. person under the Foreign Intelligence Surveillance Act (excluding foreign states and sovereign wealth funds), "foreign state" as under 28 U.S.C. §1603, and "sovereign wealth fund" as an investment fund owned or controlled by a foreign state, its agency or instrumentality, or an agent of a foreign principal under the Foreign Agents Registration Act (22 U.S.C. §611). (2) Requires each party and counsel of record to disclose to the court, all other named parties, the Attorney General, and the Principal Deputy Assistant Attorney General for National Security (A) identifying details of any foreign person, foreign state, or sovereign wealth fund (other than named parties or counsel) with a right to contingent payments from the action's outcome or a portfolio matter involving the same or affiliated counsel; (B) copies of related agreements; and (C) a perjury declaration certifying either foreign sourcing (including amounts) or that such criteria do not apply—initially by the later of 30 days after the agreement or the filing date (or 30 days after later service or joinder), with supplementation or correction required within 30 days of discovering material inaccuracies. (3) Prohibits parties and counsel from entering agreements granting third parties (other than named parties or counsel) contingent payment rights satisfied by funds sourced directly or indirectly from a foreign state or sovereign wealth fund.

This section directs the Attorney General to submit to the Senate and House Judiciary Committees, not later than one year after enactment of this Act and annually thereafter, a report on foreign third-party litigation funding activities in federal courts. The report must include, if applicable—(1) identities of foreign third-party litigation funders, including names, addresses, and citizenship or country of incorporation or registration; (2) identities of foreign persons, foreign states, or sovereign wealth funds (as defined in section 1660 of title 28, U.S. Code, as added by section 2) that sourced money for such funding; (3) judicial districts where such funding occurred; (4) estimates of total foreign-sourced money used for such funding, including amounts by country of origin; and (5) summaries of subject matters of funded civil actions.