What happened: States in all corners of the country are stepping up to the plate to address the influx of third-party litigation funding that is harming the U.S. legal system by placing investment returns over injured individuals. In 2025 alone, Arizona, Colorado, Georgia, Kansas, Montana and Oklahoma all passed laws to regulate third-party litigation funding to increase transparency and keep foreign interests out of American courtrooms. Read more
States taking action: Arizona and Montana passed legislation preventing a “foreign entity of concern” or “foreign person of concern” from financing litigation. Additionally, Colorado passed legislation requiring foreign financiers to provider certain information to the Colorado Attorney General, Oklahoma passed legislation requiring the disclosure of funding agreements upon request, Kansas enacted a law requiring the disclosure of litigation funding agreements within 30 days of a legal action and Georgia enacted a law prohibiting litigation financiers from making litigation strategy decision.
Why it matters: Third-party litigation financiers expect to see a meaningful return on their investments. Their profit-focused agendas are fanning the flames of an increasingly litigious society that incentivizes frequent, high-dollar lawsuits. States must continue passing reforms such as those mentioned above to give juries the full picture of which interests are involved in a lawsuit and to prevent hidden agendas from infiltrating the courtroom.
TLR Thoughts: Texas needs to follow its sister states in enacting third-party litigation financing regulations, whether it be through legislation or Supreme Court disclosure rules. TLR will continue advocating for increased transparency in lawsuits to ensure that cases are decided on facts, not on the interests of anonymous investors.
PROTECTING AMERICAN CONSUMERS TOGETHER
What happened: New data reveals that Florida’s five largest auto insurers lowered rates by an average of 6.5% this year following recent lawsuit abuse reforms. Read more
Remind me: In 2023, Florida Gov. Ron DeSantis signed comprehensive legal reforms aimed at curbing lawsuit abuse, reducing frivolous claims and lowering insurance costs for Floridians.
By the numbers:
TLR Thoughts: Legal reform benefits everyday consumers, as evidenced by Florida’s recent success in lowering insurance costs. Similar reforms have the potential to bring much-needed relief to families and small businesses in states like Alabama and Texas, where lawsuit abuse continues to drive up expenses and create financial burdens.
