The Georgia State Senate has unanimously approved new regulations on third-party litigation funding, as part of Governor Brian Kemp's broader tort reform package. This development was announced by Law360 in a post on February 28.
According to a press release from Governor Kemp, Senate Bill 69 is a component of a comprehensive tort reform initiative unveiled in January. The package aims to address lawsuit abuse, stabilize insurance costs, and enhance fairness in Georgia's legal system. Key provisions include reevaluating standards for negligent security liability and increasing transparency in third-party litigation financing.
Capitol Beat reports that the law imposes new disclosure requirements on third-party litigation financiers, limiting their influence over legal proceedings and protecting plaintiffs from potential exploitation. The legislation also seeks to prevent foreign entities from accessing sensitive information through litigation investments.
According to the U.S. Chamber of Commerce Institute for Legal Reform (ILR), Georgia’s tort costs totaled $20 billion in 2022, representing 2.60% of the state’s GDP. On average, this amounted to $5,050 per household. These costs include settlements, legal fees, and related expenses.
Law360 is a subscription-based legal news service headquartered in New York City, operated by Portfolio Media, Inc., a subsidiary of LexisNexis. Founded in 2003 by Marius Meland, who began by publishing a daily online newsletter on intellectual property law, Law360 expanded its coverage to other legal practice areas in 2004 with the partnership of Magnus Hoglund, leading to the official launch of Law360 in 2006.