Third Party Litigation Financing Reform – S.B. 69 (2025)

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Third Party Litigation Financing Reform – S.B. 69 (2025)

July 17th, 2025

Georgia

Applies to any arrangement in which a person or business provides financing to a consumer or entity, or its counsel, in exchange for a right to receive repayment that is contingent on the outcome of litigation. This covers funding provided to law firms and attorneys for litigation expenses, as well as to cash advances provided directly to plaintiffs/consumers as they await a settlement or judgment.
Subjects the existence, terms and conditions of litigation financing agreements to discovery. This provision does not apply to nonparties unless the agreement is for $25,000 or more in funding.
Requires all litigation financiers to register with the Department of Banking and Finance.
With respect to litigation financing by foreign entities:
o Requires the registration statement to identify any foreign person, foreign principal or sovereign wealth fund affiliated with the person seeking to register as a litigation financier in any capacity directly or indirectly related to such person’s litigation financing business.
o Prohibits a litigation financier from engaging in funding that is directly or indirectly affiliated with a foreign government, person or entity that is a federally-designated foreign adversary.
Prohibits litigation financiers from engaging in practices that raise ethical issues and conflicts of interest, such as directing the litigation or settlement, choosing counsel or expert witnesses,
offering legal advice, or participating in referral arrangements with law firms or others providing goods or services (such as medical clinics).
Prohibits litigation financiers from receiving a share of the recovery that is more than the amount collectively recovered by plaintiffs after the plaintiffs pay attorney’s fees and costs.
Requires certain contract disclosures to consumers in litigation financing agreements.
Prohibits any person who provides goods or services related to the litigation to a consumer from having a financial interest in litigation financing provided to the consumer.
Subjects litigation financiers that provide $25,000 or more in funding to joint and several liability for an award of sanctions or costs against a consumer, entity, or its legal representative.

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