Bill > HB432

This bill addresses third-party litigation financing in Louisiana by establishing new rules for how litigation financers (companies that provide money to plaintiffs in exchange for a portion of potential legal settlements) can recover funds and mandating disclosure requirements. Specifically, the bill limits litigation financers to recovering no more than the share of proceeds received by plaintiffs after attorney fees and costs are paid, requires that the existence of litigation financing agreements be subject to discovery in civil proceedings, and mandates that attorneys disclose the existence of such financing agreements to their clients within thirty days of being retained or entering into the agreement. The bill also includes a specific exemption for nonprofit legal organizations providing pro bono (free) representation, ensuring they are not required to disclose donor information and that their potential awards of costs or attorney fees remain unaffected. These provisions aim to increase transparency in litigation financing and protect the interests of plaintiffs by preventing excessive financial arrangements that could potentially exploit legal proceedings.

Justice

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB432&sbi=y