Class Action: N.D. Cal. Adopts Standing Order Requirement That Class Counsel Disclose Third Party Litigation Funding In Class Actions

 

Rule Came Down On January 23, 2017.

     U.S. District Judge Susan Illston, in Gbarabe v. Chevron Corp. (a class action relating to a gas explosion off the coast of Nigeria), ordered plaintiff to produce a funding agreement in the class action in a late 2016 order in response to a motion by Chevron.

     The disclosure did not end in just that case. On January 23, 2017, the Northern District of California Civil Rules Committee adopted a revision to the district court’s standing order (Civil LR 3-15) which states “[i]n any proposed class, collective, or representative action, the required disclosure includes any person or entity that is funding the prosecution of any claim or counterclaim.” There is a lot of debate on the pros and cons of such a disclosure, but looks like it is here to stay and may spread based on the Northern District’s deep experience with class actions.

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