What's Happening?
Ohio is set to join a growing number of states regulating the litigation finance industry with the passage of House Bill 105. The state House has concurred on the legislation, which now awaits the signature of Governor Mike DeWine. The bill mandates that
both commercial and consumer litigation funders register with the state and disclose funding agreements to the attorney general after cases are resolved. It also prohibits funders from influencing the handling or settlement of lawsuits and from entering into funding agreements with foreign entities. The legislation was introduced by Republican lawmakers.
Why It's Important?
The regulation of litigation funding is a significant development in the legal and financial sectors, as it addresses concerns about transparency and influence in legal proceedings. By requiring registration and disclosure, the bill aims to ensure that litigation funding does not compromise the integrity of the legal process. This move could impact the availability and terms of litigation funding in Ohio, potentially affecting both plaintiffs and defendants in civil cases. It also reflects a broader trend of states seeking to regulate this growing industry, which could lead to more uniform standards across the country.
