Bill > SB1215

This bill introduces comprehensive regulations for litigation financing in Arizona, establishing consumer protections and defining key terms and restrictions. The legislation defines a "litigation financing agreement" as any arrangement where payment is contingent on the outcome of a legal action, and creates specific definitions for entities from "foreign countries of concern," including countries or organizations that may pose national security risks. The bill requires full disclosure of any referral fees or commissions paid to legal counsel, mandates that litigation financiers cannot make decisions about legal strategies or settlements, and prohibits funding from foreign entities of concern. Importantly, the bill allows litigation financing agreements to be voided if they violate these provisions and permits only the Attorney General or parties to the litigation to challenge such agreements as unlawful. The legislation also requires courts to consider the existence of litigation financing when evaluating class action representatives or appointing leadership counsel in multidistrict litigation. Notably, the bill becomes effective on December 31, 2025, and applies to civil actions, administrative proceedings, claims, or causes of action commenced on or after that date, aiming to increase transparency and protect consumers in the litigation financing process.

Government Affairs, Justice

https://apps.azleg.gov/BillStatus/BillOverview/82560