Community Spotlight: Guillermo Ruiz Medrano, Attorney, CUATRECASAS

In a closely watched decision, a federal judge has denied Apple’s attempt to compel Haptic Inc. to turn over litigation funding records in an ongoing patent infringement case.

According to Bloomberg Law, the dispute centers on Haptic’s claims that Apple’s iPhone “Back Tap” feature infringes on its patented technology. As part of its defense, Apple sought disclosure of communications between Haptic and its third-party funders, arguing the materials could reveal improper influence or strategic coordination.

The court, however, ruled in favor of Haptic, holding that the requested documents are protected under the work-product doctrine. This legal principle shields materials prepared in anticipation of litigation from disclosure, unless the opposing party demonstrates a substantial need. The judge emphasized that Apple had not met that burden, noting that the funder’s role did not compromise the independence of Haptic’s legal counsel or litigation strategy.

This decision is the latest in a series of rulings that underscore courts’ growing acceptance of litigation funding as a legitimate component of the civil litigation system. It also highlights the increasing legal clarity around funder-client relationships, especially regarding privilege and disclosure.

A new report from the Insurance Information Institute (Triple-I) is drawing attention to the growing intersection between third-party litigation funding, mass tort advertising, and rising insurance costs. The report argues that these trends are correlated and may also be fueling a cycle of litigation abuse that places upward pressure on insurance premiums across the country.

According to Insurance Journal, the Triple-I report signals growing concern among insurers about the litigation finance industry’s systemic impact on claim costs and rate-setting. The report claims that attorney advertising—often funded or indirectly supported by litigation financiers—has surged in recent years, particularly in areas like product liability, pharmaceuticals, and toxic exposure. The influx of cases, many involving large aggregations of claims, has increased both the frequency and severity of insurance payouts. Triple-I warns that this dynamic contributes to a “social inflation” effect, where legal costs outpace economic fundamentals.

The report calls for regulatory action and transparency, suggesting that clearer disclosure rules around third-party funding and advertising could help insurers, courts, and the public better assess the risks and incentives involved.

While the litigation finance industry has long argued that its capital helps level the playing field for under-resourced claimants, critics say the unchecked expansion of funding models and advertising tactics may tilt the balance toward profit over merit.