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Mar. 16, 2026

California targets litigation funding with new regulations

With financial backers playing an increasingly influential role in civil cases, AB 931 is designed to prevent plaintiffs from being puppeted by funders while preserving attorneys' independence.

Frances M. O'Meara

Partner
Wood Smith Henning & Berman LLP

Phone: (310) 481-7698

Email: fomeara@wshblaw.com

Loyola Law School

See more...

California targets litigation funding with new regulations
Shutterstock

Third-party litigation funding has quietly become one of the fastest growing sectors connected to the civil justice system. What began as a relatively niche financing mechanism has developed into a multibillion-dollar global industry that increasingly intersects with the practice of law, raising questions about ethics, transparency and the distribution of litigation proceeds. Industry estimates place ...

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