News Summary
Georgia lawmakers have recently passed Senate Bill 69, aimed at increasing transparency in third-party litigation financing. The bill, approved on March 27, 2025, mandates the registration of lawsuit financing entities with the Georgia Department of Banking and Finance, ensuring juries are informed about financial backers. It also prohibits funders from influencing plaintiffs’ settlement decisions and bans foreign governments from funding lawsuits. While supported by business leaders for promoting oversight, some critics argue it may serve corporate interests over ordinary citizens.
Exciting News from Atlanta: Georgia’s New Law on Lawsuit Financing
Atlanta is buzzing with the recent passage of Senate Bill 69, a legislation aimed at enhancing transparency in third-party litigation financing. Georgia lawmakers gave this bill the green light on March 27, 2025, securing approval from both the House and Senate. The new law focuses on ensuring that juries are fully informed about any outside groups that might be financing lawsuits, which has become a pressing issue in the state’s judicial system.
What’s the Bill All About?
Essentially, what this bill does is require entities that finance lawsuits to register with the Georgia Department of Banking and Finance. This means if a company or group is funding a lawsuit, they must be disclosed, and this information will be available to jurors and judges. No longer will these behind-the-scenes financiers remain in the shadows!
Another critical aspect of the bill is that it prohibits these funding groups from pressing plaintiffs about when and how to settle their cases. This aims to cut down on any perceived undue influence these funders might have on the lawsuit process. Furthermore, the legislation goes a step further by banning foreign governments from funding lawsuits in Georgia, which has been a concern for many.
Support and Praise for the Legislation
Support for SB 69 has come from various corners, including business leaders who believe that it promotes more oversight in the world of litigation financing. The National Federation of Independent Business has expressed approval, pointing out that it combats what they describe as a “predatory practice.” Many believe that these financing arrangements can sometimes pressure defendants into taking settlements that may not be in their best interest.
Those in favor of the bill argue that while it doesn’t restrict individuals from pursuing their day in court, it adds an essential layer of transparency. Jurors will be better informed about who stands to gain financially from a lawsuit, which can impact how they view the case.
Concerns and Criticism
However, not everyone is on board with this new legislation. There are critics who argue that the issues addressed in SB 69 are either exaggerated or don’t exist at all. Some see it as a move that mostly serves corporate interests, potentially at the cost of ordinary citizens. They argue that instead of making genuine improvements to the legal system, the bill may simply create unnecessary hurdles for people seeking justice.
Moving Towards Reform
Despite the mixed reactions, many believe that this bill marks a significant step toward fairness in Georgia’s legal framework. The Georgia Motor Trucking Association has noted the importance of disclosed third-party financiers for both juries and judges during civil lawsuits. Transparency is hard to argue against, especially when justice is at stake.
Furthermore, it’s worth noting that similar legislation has been introduced in other states like Indiana, Louisiana, and West Virginia over the past year. This indicates a growing trend towards increasing transparency in litigation financing across the country.
The Path Forward
The amended version of SB 69 also contains additional provisions that allow the Department of Banking and Finance to deny litigation financing registrations, along with an appeals process should any disputes arise. Additionally, companies that own 10% or more of the financing must provide additional disclosures, bringing greater accountability to the table.
As Georgia gears up to make this law official, Governor Brian Kemp is expected to put pen to paper within the week. This could set a vital precedent for how litigation financing is handled not just in Georgia but as a model for other states to consider.
As the dust settles from this legislative move, it will be fascinating to observe its impact on individuals, businesses, and the overall justice system in Georgia. The question remains: is this the beginning of a more transparent and fair road ahead?
Deeper Dive: News & Info About This Topic
- Transport Topics: Georgia Third Party Lawsuit
- NFIB: House Passes Senate Bill on Third-Party Litigation Financing
- Insurance Insider: Georgia Lawmakers Pass Legal Reform Bill
- Georgia Recorder: Bill Requiring Disclosure of Third-Party Financing
- Law360: Georgia Restrictions on Litigation Funders
- Wikipedia: Litigation Financing
- Google Search: Georgia litigation financing laws
- Google Scholar: Georgia litigation financing
- Encyclopedia Britannica: Litigation Financing
- Google News: Georgia lawsuit funding
