summary
Introduced
02/05/2026
02/05/2026
In Committee
02/10/2026
02/10/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Litigation Financing Transparency Act. Provides that a person shall not engage in litigation financing in the State unless the person is registered as a litigation financier under the Act. Provides that, to register as a litigation financier, a person shall file a registration statement with the Department of Financial and Professional Regulation. Sets forth requirements for registration. Prohibits litigation financier from engaging in specified conduct. Sets forth required disclosures in litigation financing agreements. Provides that a violation of the Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Amends the Code of Civil Procedure. Provides that a party may obtain discovery of the existence and terms and conditions of a litigation financing agreement if it is the subject of or is involved in a pending action. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.
AI Summary
This bill, titled the Litigation Financing Transparency Act, establishes regulations for companies that provide funding for lawsuits, known as "litigation financiers." To operate in the state, these financiers must register with the Department of Financial and Professional Regulation and adhere to specific rules, including prohibitions against influencing the direction of a lawsuit or accepting referral fees from legal or medical professionals. The bill also mandates clear disclosures in litigation financing agreements, ensuring consumers understand their rights, including a five-day cancellation period and limitations on how much the financier can profit, capped at 25% of the gross recovery after attorney fees and costs. Furthermore, it allows parties in a lawsuit to discover the existence and terms of any litigation financing agreements involved, and violations of this Act will be considered unlawful practices under the Consumer Fraud and Deceptive Business Practices Act, potentially leading to penalties and making the financing agreement void.
Sponsors (1)
Last Action
Referred to Rules Committee (on 02/10/2026)
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