ANALYSIS: State Proposals to Regulate Lit Finance Surge in 2025

State legislators this year have introduced an eye-opening amount of legislation seeking to regulate the industry within their own borders.

The number of bills signed into law in statehouses also grew—albeit modestly—compared to previous years. The substantial growth in the total number of bills introduced may reflect growing attention on the litigation finance industry’s expansion, concerns over foreign influence and transparency, and even corporate lobbying efforts advocating for greater government oversight.

Growth in Proposed State Regulations

Year to date, state lawmakers have introduced more than 10 times as many bills seeking to regulate commercial and consumer litigation financing as they ...