Floridians for Lawsuit Reform has commended Arizona for implementing stringent measures against third-party litigation funding. The organization announced on X that it praised Arizona’s actions and urged other states to adopt similar transparency and accountability standards.
According to the Arizona Capitol Times, in 2024, Arizona Governor Katie Hobbs signed legislation aimed at restricting third-party litigation financing. The new law bans referral fees, prohibits foreign-backed funders, and prevents financiers from directing legal strategy. Concurrently, the Arizona Supreme Court introduced a rule mandating the disclosure of all outside investors involved in financed lawsuits. These combined efforts position Arizona as one of the most assertive states in regulating litigation funding.
The U.S. Government Accountability Office (GAO) reported in 2023 that litigation funding has evolved into a multibillion-dollar global industry with minimal transparency within the United States. The GAO warned that this lack of disclosure allows funders to profit discreetly, often without the knowledge of plaintiffs, defendants, or even judges. Floridians for Lawsuit Reform contends that Arizona’s new disclosure requirements effectively address these transparency issues.
The Wall Street Journal has underscored bipartisan concerns in Congress regarding national security risks posed by foreign litigation funding. Lawmakers have cautioned that adversarial governments could potentially exploit U.S. courts to further strategic objectives or disrupt American businesses. Floridians for Lawsuit Reform points to Arizona’s prohibition on foreign-backed funding as a proactive measure against such risks.
Floridians for Lawsuit Reform is a nonprofit advocacy group focused on promoting accountability and fairness within Florida’s legal system. According to its website, the organization collaborates with lawmakers, educates citizens, and advocates for reforms targeting issues like lawsuit advertising, excessive tort costs, and third-party litigation funding. Its mission is to shield Floridians and businesses from the financial burdens associated with abusive litigation practices.
