April 27, 2025 9:22 am
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Competing bills focus on identifying third-party funders of lawsuits

By Kiera Riley | Arizona Capitol Times

Conflicting ideas on how, or whether, to regulate the practice of third-parties paying legal bills has left two warring pieces of legislation on litigation finance up for debate in the Legislature.

Litigation finance is a practice in which a third party investor steps in to fund a lawsuit, typically with an agreement granting a cut of any monetary benefit or relief reaped as a result.

Business associations, chambers of commerce and insurance companies want third-party financiers to announce litigation investments up front and refrain from influencing cases, with an underlying goal to create more transparency and deter any alleged foreign interference.

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