Michael Kelley was quoted in Bloomberg Law about a proposal to impose a punitive excise tax on the litigation finance industry as the One Big Beautiful Bill moved through the U.S. Senate. The item was ultimately stripped during the reconciliation process. 

“I don’t think this is going to be a one-off bill,” Michael said. “It’s a rifle shot that is right to the heart of the industry.”

Michael counsels funders, law firms, and in-house counsel on the evolving world of litigation finance. He has advised on transactions ranging from a few hundred thousand dollars to over $700 million. 

The proposed legislation would have imposed a 31.8% tax on litigation funders’ profits, prohibited loss offsets, included entity level taxation, and imposed new withholding tax obligations on funded parties. While it was removed from the reconciliation bill via a Byrd Rule challenge, the episode prompted a rapid lobbying response and sparked conversations across the industry. 

Subscribers can read the full article here: Litigation Funders’ Tax Bill Escape Spurs Industry Reckoning

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