With common-sense reforms, Lansing can ensure judicial financing tools are accessible without undermining our legal system or putting litigants in harm’s way…
The Michigan Alliance for Legal Reform is applauding a bipartisan House vote on HB 5281, legislation aimed at bringing transparency and accountability to third-party litigation funding (TPLF) — a largely unregulated practice where outside investors finance lawsuits in exchange for a cut of the settlement. The bill would require funders to register with the state, cap their earnings, ban foreign adversaries from financing lawsuits, and prohibit funders from influencing case outcomes. Supporters say the reforms protect both plaintiffs and small businesses without eliminating access to litigation financing.
