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Missouri’s Special Committee on Litigation Reform has passed HB 2771, the Consumer Litigation Funding Model Act, which would put in place regulations for third-party litigation funding, the American Property Casualty Insurance Association, which supports the legislation, said Thursday.
HB 2771 would require all participants in litigation financing arrangements to disclose their existence – including to the insurers of individuals filing suit – as part of discovery during personal injury litigation.
Hilary Segura, APCIA’s assistant vice president for state government relations, said in a statement the bill “addresses a growing and extremely concerning legal trend that puts vulnerable individuals who file a lawsuit at risk of being taken advantage of” by third-party litigation financiers.