Calif. Lawsuit Funding Bill Slashed After Industry Pushback (1)

Plaintiffs’ lawyers and litigation funders scored a lobbying win this week as a California bill meant to shine a light on outside money behind lawsuits was watered down.

The Predatory Lawsuit Lending Prevention Act, SB 581, sponsored by state Sen. Anna Caballero, originally required all parties in lawsuits in California state courts to disclose whether outside investors or lenders were funding the cases. A new version, unveiled at a Tuesday hearing, requires disclosures only if ordered by a judge. It also allows the disclosures to be made behind closed doors, rather than in public.

“The bill that was introduced ...