Protecting Our Courts from Foreign Manipulation Act of 2023

This bill amends federal law to increase transparency and oversight of third-party litigation funding by foreign persons, and prohibits such funding by foreign states and sovereign wealth funds. It requires disclosure of foreign funders and certifications in civil actions, bans agreements funded by foreign states or sovereign wealth funds, and mandates annual reports to Congress.

Sec. 2, Transparency and limitations on foreign third-party litigation funding: This section adds a new section 1660 to title 28 of the U.S. Code. It defines 'foreign person,' 'foreign state,' and 'sovereign wealth fund.' In any civil action, parties or their counsel must disclose to the court, other parties, the Attorney General, and the Principal Deputy Assistant Attorney General for National Security the name, address, and citizenship or incorporation country of any foreign person, state, or sovereign wealth fund with a contingent right to payment from the action or a related portfolio. They must also produce the funding agreement and submit a certification on whether the money is sourced from a foreign entity. Disclosures and certifications must be made within 30 days of the agreement or case filing, with later-joined parties having 30 days. They must be under penalty of perjury and supplemented if incomplete. It is unlawful to enter an agreement for contingent payment sourced from a foreign state or sovereign wealth fund; such agreements are null and void. Failure to comply is subject to sanctions under Federal Rules of Civil Procedure.

Sec. 3, Report to Congress: The Attorney General must submit an annual report to the Senate and House Judiciary Committees, starting one year after enactment, on foreign third-party litigation funding in federal courts. The report must include identities of foreign funders, sources of money, judicial districts involved, an estimate of total foreign-sourced money by country, and a summary of case subject matters.

Sec. 4, Applicability: The amendments apply to any civil action pending on or started on or after the date of enactment.