Floridians for Lawsuit Reform has announced on X its initiative to enhance transparency in litigation funding. The group is emphasizing the need for contract disclosures and advocating for policy changes within Florida.
According to reform advocates focused on Florida, third-party litigation funding (TPLF) poses a growing risk to fair case resolution. They cite newly surfaced contracts that demonstrate extensive control by funders. Their argument suggests that undisclosed external capital can extend disputes, increase legal expenses, and shift court decisions towards investor incentives. They highlight states moving towards disclosure regimes, pointing to Kansas as a model where judges and opposing parties are informed. The advocates urge the Florida Legislature to adopt similar rules to protect families and businesses from hidden conflicts.
A recent review by Reuters of litigation-funding agreements found clauses that allow funders to reject settlements, choose or instruct counsel, and even assume control of litigation in certain instances. Critics argue these features skew strategy towards maximizing returns rather than serving client interests. The report emphasizes that these terms are often confidential, limiting judicial oversight unless disclosure is mandated. This finding supports calls for baseline transparency so courts can assess potential conflicts and coercive leverage before they influence outcomes.
The scale of the industry adds significance to policy debates. Data from Westfleet Advisors, reported by Reuters, indicates more than 42 active funders managing approximately $16.1 billion in assets and committing around $2.3 billion to new deals over the past year. Reform proponents argue that such substantial outside capital can prolong timelines and increase costs for both defense and plaintiffs. States favoring disclosure contend that transparency can deter settlement-blocking terms and assist courts in protecting litigants from funder-driven strategies that escalate expenses.
Floridians for Lawsuit Reform is a Florida-based 501(c)(4) advocacy group dedicated to curbing lawsuit abuse, enhancing legal transparency, and reducing costs associated with excessive litigation. The organization educates voters and policymakers about trends such as contractor fraud and TPLF while supporting reforms that align liability with fault. It positions itself as a center-right voice aimed at stabilizing insurance markets and shielding households and small businesses from litigation-driven cost pressures.