State Litigation Finance Bill Put on Ice

State legislation aimed at shining a light on the world of commercial legal financing won’t get a final vote until at least next year.

The bill (AB 743) would require investors funding lawsuits with the goal of profiting from a settlement or verdict to get a license with state Department of Financial Protection and Innovation. Litigation financiers would also have to file annual reports and certain other disclosures to the department.

The measure’s author, Assemblymember Michelle Rodriguez (D), pulled it from the agenda of Wednesday’s Senate Banking and Finance Committee meeting. Rodriguez has turned it into ...