SB 1396 — Litigation Financing Consumer Protection

Florida Senate - 2026 CS for SB 1396 By Senatorthe BurtonCommittee 12-00987A-26on 20261396__Rules; A bill to be entitled An act relating to litigation financing consumer protection;

and Senator Burton 595-02443-26 20261396c1 A bill to be entitled An act relating to litigation financing consumer protection;

authorizing courts to consider the existence of a litigation financing agreement tounder determinecertain ifcircumstances; a class representative or lead counsel or co-lead counsel to a class action lawsuit would adequately and fairly represent the interests of the class;

requiring certain parties to a legal proceedingproceeding, or their counsels of record, which have entered into a litigation financing agreement with a foreign person, a foreign principal, or a sovereign wealth fund to file and serve a notice identifying specified information with the court, agency, or tribunal and all other parties to the legal proceeding within a specified timeframe;

authorizing the court, agency, or tribunal to order that the notice or supporting documentation Pagebe 1filed ofunder 11seal CODING:and issue protective orders to safeguard proprietary or confidential information;

prohibiting a foreign Page 1 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 belitigation filedfinancier underor sealperson andacting issueon protectiveits ordersbehalf from using a domestic entity or affiliate to safeguardconceal proprietaryor evade such disclosure requirements or confidentialfrom information;receiving, transmitting, or sharing certain information obtained through litigation financing with certain foreign persons, foreign principals, or sovereign wealth funds;

prohibiting a foreign litigation financier or person acting on its behalf from using a domestic entity or affiliate to conceal or evade such disclosure requirements or from receiving, transmitting, or sharing certain information obtained through litigation financing with certain foreign persons, foreign principals, or sovereign wealth funds;

Sections 69.011, 69.021, 69.031, 69.041, 69.051, 69.061, 69.071, and 69.081, Florida Statutes, are designated as part I of chapter 69, Florida Statutes, and entitled “General PageProvisions.” 2Section of3. 11 CODING:

Part II of chapter 69, Florida Statutes, consisting of ss.

69.101, 69.103, 69.105, 69.107, and 69.109, Page 2 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 Provisions.”Florida SectionStatutes, 3.is created and entitled “Litigation Financing,” to read:

Part II of chapter 69, Florida Statutes, consisting of ss.

69.101, 69.103, 69.105, 69.107, and 69.109, Florida Statutes, is created and entitled “Litigation Financing,” to read:

or (c) Any partnership, association, corporation, organization, or other combination of persons organized under the laws of, or having its principal place of business in, a country other than the United States whose shares or other ownership interest is owned by the government or a government official of a country other than the United States or owned by a Pagepolitical 3subdivision or political party, or the officials thereof, of 11a CODING:country other than the United States.

(3) “Foreign funder” means a foreign person, foreign Page 3 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 politicalprincipal, subdivision or politicalsovereign party,wealth orfund thethat officialsprovides thereof,funding ofdirectly aor countryindirectly otherunder thana thelitigation Unitedfinancing States.agreement.

(3) “Foreign funder” means a foreign person, foreign principal, or sovereign wealth fund that provides funding directly or indirectly under a litigation financing agreement.

(a) An agreement to provide funds for or to a party to a civil action, an administrative proceeding, a claim, or other legal proceeding for such person’s use in paying his or her costs of living or other personal or familial expenses during the pendency of such action, claim, or proceedingproceeding, which funds are not used to finance any litigation or other legal costs.

(b) An agreement wherein an attorney consents to provide legal services on a contingency fee basis or to advance his or her client’s legal costs, and where such services or costs are Pageprovided 4by the attorney in accordance with the Florida Rules of 11Professional CODING:Conduct or equivalent professional conduct rules applicable in the attorney’s licensing jurisdiction.

Page 4 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 provided(c) byAn theentity attorneywith ina accordancepreexisting withcontractual theobligation Floridato Rulesindemnify ofor Professionaldefend Conduct.a party to a civil action, an administrative proceeding, a claim, or other legal proceeding.

(c) An entity with a preexisting contractual obligation to indemnify or defend a party to a civil action, an administrative proceeding, a claim, or other legal proceeding.

501(c)(3) of the United States Internal Revenue Code, by grant or otherwise, to cover the costs and expenses of pro bono legal representation or litigation that does not seek punitive damages, regardless of whether the Pagerecipient 5of the funding seeks an award of 11costs CODING:or attorney fees.

The nonprofit organization may, contingent upon the Page 5 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 recipientoutcome of the fundinglitigation, seeksreceive anrepayment awardnot ofto costsexceed orthe attorneyamount fees.of funding provided.

The(h) nonprofitFunding organizationprovided may,in contingenta uponforeign theclass outcomeaction oflawsuit where the litigation,party receivedomiciled repaymentin notthe toUnited exceedStates theis amounta member of fundingthe provided.class.

adequate representation.—A court may take the existencePage 6 of a11 litigationCODING: financing agreement into account:

Page 6 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 (1)existence In a class action lawsuit brought in the courts of this state, when determining whether a classlitigation representativefinancing oragreement classinto counselaccount: would adequately and fairly represent the interests of the class.

(1) In a class action lawsuit brought in the courts of this state, when determining whether a class representative or class counsel would adequately and fairly represent the interests of the class.

(2) Contract for or receive, whether directly or indirectly, a larger share of the proceeds of any civil action, administrative proceeding, claim, or other legal proceeding financed by a litigation financing agreement than the share of the proceeds collectively recovered by the plaintiffs to any such action, claim, or proceeding after the payment of any attorney fees and costs owed in connection to such action, Page 7 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 attorney fees and costs owed in connection to such action, claim, or proceeding.

69.107 Transparency for foreign litigation financiers.— (1) If a party to any civil action, administrative proceeding, claim, or other legal proceeding,proceeding filed in the United States, or that party’s counsel of record, has entered into a litigation financing agreement with a foreign person, foreign principal, or sovereign wealth fund, the party, or the party’s counsel of record, must, within 14 days after execution of the agreement or within 7 days after filing such action, whichever occurs first, file and serve a notice thatwith the court, agency, or tribunal, and all other parties to the proceeding, which identifies:

and (c) Each foreign person, foreign principal, or sovereign wealth fund that, directly or indirectly, owns or controls 3 percent or more of the capital, equity, or other beneficial Page 8 of 11 CODING:

Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 (c) Each foreign person, foreign principal, or sovereign wealth fund that, directly or indirectly, owns or controls 3 percent or more of the capital, equity, or other beneficial ownership interests in the litigation financier, including the legal name, address, and citizenship or country of incorporation or registration of each such person or entity.

(a) Use a domestic entity or an affiliate to conceal or evade the disclosure requirements of this section;

(5) The requirements of this section apply to a litigation financing agreement entered into with any litigation financier if a foreign person, foreign principal, or sovereign wealth fund has provided or will provide funds, whether directly or indirectly,Page to9 the litigation financier which amount to 5 percent or more of the11 fundsCODING: the financier has provided or is committed to provide under the litigation funding agreement.

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Florida Senate - 2026 CS for SB 1396 12-00987A-26595-02443-26 20261396__20261396c1 (6)indirectly, Failureto the litigation financier which amount to comply5 withpercent thisor sectionmore mayof subjectthe funds the noncomplyingfinancier partyhas toprovided appropriateor sanctionsis committed to provide under s.the litigation funding agreement.