Floridians for Lawsuit Reform has announced on X the necessity for safeguards to hold third-party litigation funders accountable and prevent courts from being treated as investment vehicles.
According to a Cornell Law School analysis, the litigation funding market has rapidly expanded into a multibillion-dollar industry, with outside financiers treating lawsuits as investment opportunities. The study explains that these arrangements can encourage more speculative lawsuits while reducing transparency in the judicial process. Critics argue that without disclosure, courts and juries remain unaware of who is driving litigation decisions and profiting from settlements.
Georgia recently passed Senate Bill 69, a comprehensive tort reform measure that includes registration and disclosure requirements for litigation funders. According to Holland & Knight, the law compels financiers to register with the state’s Department of Banking and Finance, disclose ownership structures, and make funding agreements discoverable in civil cases exceeding $25,000. Legal experts note that this legislation makes Georgia one of the first states in the nation to impose comprehensive oversight on third-party litigation funding.
Bloomberg Law reports that some funders are now pursuing direct equity stakes in U.S. law firms as a way to sidestep growing state-level restrictions on litigation financing. Burford Capital, one of the largest global litigation financiers, has publicly considered purchasing minority shares in law firms to maintain influence over cases while avoiding disclosure mandates. Analysts warn this approach could heighten conflicts of interest by blurring the line between legal advocates and financial backers.
Floridians for Lawsuit Reform is a nonprofit advocacy organization dedicated to advancing policies that curb lawsuit abuse and promote fairness in Florida’s legal system. According to its official website, the group works with policymakers, businesses, and community leaders to support reforms that reduce excessive litigation and lower costs for consumers. Its mission is to ensure Florida’s civil justice system remains balanced, predictable, and accountable for all residents.