Investors financing lawsuits in California with the goal of profiting from a settlement or verdict would have to be licensed by the state under a bill advancing in the Legislature.
The measure (AB 743) is the latest effort by California Democrats to bring transparency to an opaque industry worth $16 billion in the US. Past attempts by legislators to tighten rules on state litigation finance have stalled following opposition by consumer attorneys, an influential constituency at the state capitol.
But the latest measure hasn’t encountered any formal opposition because it would target commercial suits.
Other states require similar ...
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