Behrens & Appel: The State of Third-Party Litigation Funding Reforms
State lawmakers have been increasingly interested in third-party litigation funding (TPLF) reforms, introducing at least 50 TPLF-related bills in 2025 across the United States. In a commentary article in the August 2025 issue of Mealey’s Personal Injury Report, Shook Public Policy Practice Co-Chair Mark Behrens and Senior Counsel Christopher Appel provide a comprehensive look at such reforms.
“A Survey Of State Laws Regulating Third-Party Litigation Funding” discusses common elements of TPLF reforms, including provisions that require disclosure of TPLF arrangements or agreements, bars on funder control of litigation decisions, and bars of litigation funding by foreign adversaries. They say the trend of more reforms is promising, but they vary widely from state to state.
“Some state laws effectively address issues that are core concerns with regard to the use of TPLF in civil cases,” they say. “The laws in other states, however, fall short of meaningfully regulating TPLF arrangements, leaving room for improvements to be made.”
