S. 3180: Protecting Our Courts from Foreign Manipulation Act of 2025

This bill, known as the Protecting Our Courts from Foreign Manipulation Act of 2025, aims to increase transparency and oversight in the funding of civil litigation by foreign entities, specifically targeting issues related to third-party funding. In plain terms, the bill proposes several key measures:

1. Definitions

The bill introduces definitions for various terms, including:

• Foreign Person: Any individual or entity that is not a U.S. person.
• Foreign State: As defined in existing legal frameworks.
• Sovereign Wealth Fund: An investment fund controlled by a foreign state or an agency of a foreign state.

2. Disclosure Requirements

In a civil lawsuit, parties must:

• Disclose the identity and details of any foreign person, state, or sovereign wealth fund that might receive payment depending on the outcome of the case.
• Provide copies of any agreements related to these payments.
• Submit a certification regarding the source of the money used for funding the case, particularly emphasizing foreign involvement.

This disclosure must happen within specific timeframes, usually 30 days after relevant agreements are made or the case is filed.

3. Prohibition on Certain Funding

The bill prohibits entering into agreements that allow for funding from:

• Foreign states.
• Sovereign wealth funds.

Any agreements made in violation of this prohibition will be considered null and void.

4. Enforcement and Sanctions

If parties fail to meet the disclosure requirements or certification duties:

• The information is subject to sanctions outlined in the Federal Rules of Civil Procedure.
• There are expected penalties for failing to disclose adequately or for providing misleading information.

5. Reporting Requirements

The Attorney General is required to report to Congress annually on:

• The identities of foreign entities involved in litigation funding.
• The judicial districts affected by foreign funding.
• Estimates of the total foreign money involved in funding civil litigations, along with details about the countries contributing this funding.

6. Applicability

The provisions of this bill will apply to any civil legal actions that are pending or commenced after the enactment of the law.

Relevant Companies

• BLK (BlackRock, Inc.): May be impacted given its involvement in investment management and its potential connections to sovereign wealth funds.
• TPR (Tapestry, Inc.): Possible involvement in international markets might expose the company to the implications of this law.
• JPM (JPMorgan Chase & Co.): As a major financial institution, it could be affected by changes in litigation funding structures.