Bill > HB3205

This bill establishes new regulations for litigation funding, which is when a third party provides funds for a civil lawsuit in exchange for a share of any potential recovery. Key provisions include defining terms like "foreign principal" (a country, government, or organization considered a concern by the U.S., including those designated as terrorist organizations), "agent of a foreign principal," "litigation expenses" (costs associated with a lawsuit), "litigation funder" (an entity providing funds, with specific exclusions for family members, attorneys with existing client relationships, certain financial institutions, and non-profits providing pro bono services), and "litigation funding agreement" (a contract where a third party funds a lawsuit and has an interest in its proceeds). The bill prohibits foreign principals or their agents from engaging in litigation funding in the state or investing in or financing litigation funders. It also requires litigation funders to have a fiduciary duty to the party they fund, making them jointly liable for any costs or sanctions imposed on the funded party or their attorney. Violations of these provisions are considered unlawful practices, subject to penalties and remedies under existing consumer protection laws, with willful violations of prohibitions on foreign involvement in litigation funding being a class E felony, and the attorney general empowered to seek injunctions against violators. Any litigation funding agreement entered into in violation of these new rules will be void and unenforceable.

Government Affairs

https://house.mo.gov/Bill.aspx?bill=HB3205&year=2026&code=R