Bill > H1157

This bill, titled the "Litigation Investment Safeguards and Transparency Act," establishes new regulations for litigation financing, which is defined as an agreement where a third-party financier provides funds for a legal case in exchange for a share of the potential outcome, excluding certain arrangements like personal living expenses or standard attorney contingency fees. The bill requires courts to consider potential conflicts of interest arising from these agreements, particularly in class action lawsuits or consolidated cases, to ensure adequate representation of all parties. It also prohibits litigation financiers from controlling the legal proceedings, receiving a larger share of proceeds than the plaintiffs after fees and costs, or paying referral fees to individuals like attorneys or healthcare practitioners; it also prevents them from assigning or securitizing these agreements or taking rights beyond a share of the proceeds. A key provision mandates that if a party or their attorney enters into a litigation financing agreement with a foreign entity (defined to include foreign individuals, governments, or entities not primarily based in the U.S.), they must disclose the existence of this funding relationship, the foreign funder's identity and jurisdiction, and any foreign entity owning or controlling 3% or more of the financier. This disclosure must be made to the court, all parties, and state financial and attorney general offices within specific timeframes, though proprietary financial terms can be kept confidential and filed under seal. Foreign funders are also prohibited from using domestic entities to hide their involvement or sharing sensitive litigation information with non-parties. Violations of these provisions can render the financing agreement void, lead to enforcement under Florida's Deceptive and Unfair Trade Practices Act, and result in fines or other sanctions by the court or relevant agencies, with the act's provisions generally applying to agreements made on or after July 1, 2026.