Developing Story
Litigation Funding Transparency Regulation
A wave of state-level litigation funding transparency laws, including a new Ohio statute, is accompanying increased judicial pushback — exemplified by a Florida court vacating a $20 million forced sale of law firm shares to a litigation funder.
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Momentum is building for litigation funding transparency laws across US states, with Ohio's new disclosure law taking effect as of October 8, 2026 (Law.com, October 8). Separately, a Florida state court vacated an order that had allowed a discounted $20 million sale of an attorney's shares in three law firms to a litigation funder seeking to collect on a debt (Law360, October 8). Together these developments reflect growing judicial and legislative scrutiny of litigation funders' practices, including their influence over law firm ownership and their disclosure obligations in active cases. This is a developing regulatory trend likely to produce further state-level laws and court rulings affecting the litigation finance industry.