Bill > HB3205

This bill establishes new regulations for the funding of legal actions in Missouri, particularly concerning foreign entities and litigation funding agreements. It defines key terms such as "agent of a foreign principal" and "foreign principal," which refer to individuals or entities acting on behalf of or controlled by a foreign government or organization deemed a concern by the U.S. government. The bill also defines "litigation expenses" as costs associated with pursuing a civil lawsuit, and "litigation funder" as any person or entity involved in a "litigation funding agreement," which is a written contract where a third party provides funds for a lawsuit in exchange for a share of the potential proceeds. Importantly, the bill prohibits foreign principals and their agents from engaging in litigation funding within the state or investing in or controlling entities that do. It also mandates that litigation funders have a fiduciary duty to the parties they fund and can be held jointly liable for costs or sanctions awarded against the funded party or their attorney. Violations of these provisions are considered unlawful practices, subject to penalties, and willful violations of the restrictions on foreign involvement in litigation funding are classified as a class E felony, with the attorney general empowered to seek injunctions against violators.

Budget and Finance, Government Affairs, Justice

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