On February 13, US Senators Chuck Grassley, Thom Tillis, John Cornyn and Ben Sasse, all members of the Senate Judiciary Committee, introduced legislation requiring disclosure of third-party litigation financing agreements to the court and named parties to (1) any class action lawsuit filed in federal court, and (2) any claim that is aggregated into a federal multi-district litigation proceeding. Currently, the existence and terms of third-party litigation financing agreements, whereby hedge funds and other lenders finance the cost of civil litigation with the expectation of sharing in a portion of any recovery, are rarely disclosed to the court or opposing parties, creating the potential for conflicts of interest.
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Allison C. Yacker
Treasury Form SHC and Private Fund Advisers
By Jack P. Governale, Dina Wegh & Allison C. Yacker on
Posted in Private Investment Funds
Form SHC is due once every five years as part of a survey conducted by the Department of the Treasury soliciting information identifying ownership of foreign securities by US residents. Form SHC is due on March 3 for the year ending December 31, 2016.
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