Law Practice
Aug. 20, 2026
California Senate adds litigation-funder restrictions to AB 2305
Amendments would target funder control over legal decisions and protect lawyers and clients who report improper interference.
The Senate has added significant amendments to a bill that would impose new limits on litigation financing arrangements. AB 2305 takes aim at increasingly complex deals that critics say give funders control over litigation and the ability to claim a significant share of verdicts and settlements.
Amendments added Monday would define the unauthorized practice of law to include attempts by corporate litigation funders to control substantive legal decisions. The changes also would bar...
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