When most Missourians walk into a courtroom, they assume the case before the judge is exactly what it appears to be — one party seeking justice against another. Increasingly, that is not always the full story.
Behind many high-stakes lawsuits today are outside investors — hedge funds, private equity firms, and in some cases foreign-backed capital — financing litigation in exchange for a share of any settlement or verdict. Lawsuits have quietly become investment vehicles. Too often, judges and opposing parties are never told who is truly bankrolling the case.
That is why I filed Senate Bill 881.
Missouri took an important first step in 2023 when the General Assembly passed Senate Bill 103, establishing licensing requirements and consumer protections for companies offering pre-settlement funding to individual plaintiffs. That reform brought needed oversight to consumer lawsuit lending. But SB 103 did not address the larger and more complex issue of commercial litigation financing — particularly when foreign investors may be involved.
Meanwhile, the industry continues to grow.
Major global litigation funders such as Burford Capital, Omni Bridgeway, and Therium have invested billions of dollars into U.S. lawsuits. In high-profile patent and commercial disputes involving major American companies, outside financing has played a significant role. Members of Congress and national security experts have raised concerns that foreign sovereign wealth funds and overseas investors are participating in litigation portfolios targeting U.S. businesses.
When foreign capital funds litigation against American companies, the courtroom can become more than a venue for resolving disputes. It can become part of a broader global investment — and potentially intelligence — strategy.
There is another troubling dynamic. When attorneys can shift financial risk to outside investors, cases that might otherwise be considered too speculative or weak can move forward. The incentives change. Prolonged litigation increases pressure for settlement, and investors profit when payouts rise — regardless of the broader economic consequences.
Those consequences are real. Extended litigation drives up insurance premiums, increases costs for employers, clogs court dockets, and ultimately raises prices for Missouri families. Businesses facing years of costly discovery and trial risk often settle simply to avoid uncertainty.
Senate Bill 881 addresses this directly. The bill prohibits foreign entities from financing litigation in Missouri courts unless they are a named party to the case. It also ensures courts have visibility into outside financial interests connected to litigation.
This is not about opposing competition. Healthy competition is essential to capitalism, and Missouri welcomes companies that sell products and create economic activity within our state. What is far more concerning is the possibility that foreign-owned entities — potentially backed by foreign governments — could use litigation financing as a competitive weapon against American businesses. Simply being sued can drive up insurance costs, damage brand reputation, and create uncertainty that affects stock prices and investor confidence.
Beyond that, civil discovery rules can require companies to produce proprietary documents, trade secrets, and sensitive strategic information. If a foreign competitor or affiliated foreign financier is backing the litigation, that discovery process could provide insight into confidential business operations. In cases involving defense contractors or federally regulated industries, even more sensitive information may be implicated. Missouri’s courts were never intended to serve as tools through which foreign interests gain competitive leverage over American enterprise.
In every other area of finance, disclosure and accountability are standard practice. There is no good reason litigation financing should be treated differently.
Missouri courts exist to deliver justice — not to serve as investment platforms for global financiers. Senate Bill 881 builds on the foundation laid by SB 103 and ensures our legal system remains focused on fairness, sovereignty, and the rule of law.
Missourians deserve courts that are transparent, impartial, and accountable. SB 881 moves us in that direction.
Senator Curtis Trent (R) is a conservative attorney and Assistant Majority Floor Leader in the Missouri Senate, representing the 20th Senatorial District, which includes Barton, Dade, Greene, and Webster counties.
