The Arizona State Senate is considering a bill that would end litigation funding in Arizona and would threaten many ABS law firms. The bill would prevent a litigation funder from “securitizing” any funding agreement, meaning there could be no investors. 

The proponents of the bill intend for the definition of “litigation financier” to apply to ABS law firms, because outside investors would be investing in lawsuits and lending money for the purpose of advertising, research, case vetting, etc.  The definition of “litigation financier” is extremely and intentionally broad.

To our understanding, the bill is being pushed hard by the insurance industry and the chamber of commerce, to both of which Republican legislators are beholden. Even so, we are told there is not a lot of enthusiasm for restricting private business. With a little pushback lobbying, we may be able to stop this bill from making it out of the Senate. 

Please reach out to Don Bivens, President of NALFA, if you wish to contribute to secure a lobbyist.

View Arizona Senate Bill 1215 here.