
Legislation
Cut the Strings on Predatory Lawsuit Lending
For too long, shadowy lawsuit lenders have exploited vulnerable Californians, charging sky-high interest rates, draining settlements, and profiting from pain. Behind the scenes, these financial puppet masters operate without oversight, pulling the strings of our legal system while everyday people pay the price.
To maximize profit on their investments, litigation funders seek to increase the likelihood of going to trial, which results in clogged courts and unnecessary lawsuits in cases where parties and the courts would otherwise seek a negotiated settlement. As a result, third party litigation funding can drive up the costs of nearly all other products and services, including insurance premiums.
CFLF-CA was formed to stand up for the real victims of this broken system and push for common sense reform. We’re fighting to expose this unchecked industry, protect California residents and business owners from abuse, and ensure that lawsuit funding remains a fair, transparent option for those who truly need it, not a trap disguised as help.
It’s time to shine a light, demand accountability, and restore justice to the people, not the profiteers.
Without reform, these private investors will keep turning our courts into their puppet stage, profiting from lawsuits they quietly control from behind the scenes.
Right now, the California Assembly is considering a half-hearted reform bill (AB 931) that does not include enough provisions to protect Californians or bring real transparency. If passed, it would only leave the door open for these financial puppeteers to continue distorting justice in California.
Lawmakers should reject AB 931 and focus on passing real reforms to rein in the puppet masters exploiting everyday Californians.