ABA Attorney Guidance Would Be an ‘Alert’ on Litigation Finance

Proper written disclosures, ensuring against undue influence, and following ethics rules highlight a proposed American Bar Association best-practices guide for attorneys considering litigation funding representation.

Largely Unregulated: Litigation finance remains largely unregulated on a federal level, despite the Chamber of Commerce arguing fee-sharing agreements between lawyers and funders should be banned and seeking rules to force litigants to disclose a financier’s interest. Some state bars have considered changing ethics rules.

‘Alert Lawyers’: The ABA proposal is meant to “alert lawyers as to what’s going on” in litigation funding and to show them how to protect their clients and ...