Riley Gaines on foreign litigation funding: 'Americans lose. Foreign investors win'

Riley Gaines, an American activist, has raised concerns about predatory third-party litigation funding, which she claims allows foreign investors to finance U.S. lawsuits and profit at the expense of American companies and taxpayers. Gaines made this statement on X.

"Why are your tax dollars helping foreign billionaires sue American companies," said Gaines. "Predatory third-party litigation funding allows outside investors, including foreign entities, to bankroll lawsuits & collect a cut of the winnings. Americans lose. Foreign investors win."

Recent investigations into foreign-backed third-party litigation funding (TPLF) have highlighted issues of transparency and national security. Firms such as Burford Capital and Fortress Investment Group were mentioned in congressional hearings. A December 2024 report by the Government Accountability Office (GAO) found limited data on foreign investors in U.S. litigation and recommended mandatory disclosure of funding sources to prevent hidden influence in high-value cases.

According to Westfleet Advisors, the U.S. commercial litigation-funding market had approximately $15 billion in assets under management in 2024. New capital commitments declined by 16% year-over-year to $2.7 billion after years of rapid growth, with average deal sizes increasing as funders focused more on large-scale commercial and portfolio cases.

The GAO reported that foreign investment levels in TPLF remain unclear due to a lack of disclosure, although congressional memos suggest possible involvement by Middle Eastern sovereign wealth funds. Policymakers have expressed concerns that such funding could affect U.S. litigation outcomes, especially in intellectual property and trade-related cases, leading to calls for mandatory reporting rules.

Gaines is a former University of Kentucky All-American swimmer who has transitioned into a media host and advocate for women's sports. She currently hosts the "Gaines for Girls" podcast, where she discusses athletic fairness, Title IX protections, and cultural issues from a female athlete's perspective.