Litigation Financing ̶ SB 1534 by Senator Jay Collins (R-Tampa) picks up where past efforts in recent sessions made no progress in regulating third-party funding of lawsuits against businesses, including insurance companies. This bill is dead having never received an initial hearing and had no House companion bill. Read More
To be called the “Litigation Investment Safeguards and Transparency Act,” the bill requires a court’s consideration of potential conflicts of interest which may arise from the existence of a litigation financing agreement in specified circumstances; prohibits specified acts by litigation financiers; requires certain disclosures related to litigation financing agreements and the involvement of foreign persons, foreign principals, or sovereign wealth funds; and requires the indemnification of specified fees, costs, and sanctions by a litigation financier in specified circumstances, among other provisions. Last year, Senator Collins’ bill made it through all of its committees and a House companion got through its initial committee, but neither reached a floor vote. There is a similar effort on the federal level to get Congress to pass needed legislation. (Return to Bill Watch)
