Attorney General Chris Carr today joined 13 other state attorneys general in urging Attorney General Merrick Garland and the Department of Justice (DOJ) to break their silence on third-party litigation funding (“TPLF”). TPLF is a lucrative practice in the United States, valued between $2.3 and $5 billion, where an outside third party provides resources to fund civil disputes in exchange for a share of the recovery if successful. The attorneys general warn that foreign adversaries can spend money on American litigation with the intention of harming States and our country’s economic and national security. 

“Ensuring that our justice system remains protected from foreign interference is of paramount importance, and we are calling on the DOJ to address this security concern immediately,” said Carr. “By funding lawsuits that target specific sectors or businesses, foreign adversaries could weaponize our courts to effectively undermine our nation’s interests. We will continue working with our fellow attorneys general to ensure that those who wish to harm our country in any way are never successful, including those who wish to undermine confidence in our civil justice system.”

The letter argues that “foreign countries such as China and Russia could use TPLF to fuel targeted lawsuits designed to weaken U.S. national defense companies in the business of protecting our natural security interests. Likewise, costly litigation aimed at sabotaging major energy sectors that are vital to our economy poses a direct threat to our economic security interests and global independence.”

The federal government has not addressed this threat or created a strategy to protect our nation’s court system from foreign interference. As a result, the 14 state attorneys general are asking Attorney General Garland to communicate what they are doing to preserve the independence of our court system and assist in whatever way possible. 

Georgia Attorney General Chris Carr and Virginia Attorney General Jason Miyares led the letter and were joined by the following states: Alabama, Arkansas, Indiana, Ohio, Kansas, Kentucky, Montana, Nebraska, South Carolina, Tennessee, Utah and West Virginia.

Read the letter here.