The Georgia Senate passed Senate Bill 69 with a unanimous vote of 52-0, marking a significant step forward in protecting consumers from the growing, unchecked influence of third-party litigation funding (TPLF). This bill introduces vital reforms that aim to safeguard consumers from predatory practices in the legal system. State Senator John Kennedy made the case for the legislation on the floor before its unanimous passage.

Sen. Kennedy explained the scale of the TPLF industry and the need for regulation:

“It is important to note that TPLF is not a small industry by any stretch or any standard, and it is growing annually. In 2023, analysts reported that the U.S. commercial litigation finance industry managed an estimated $15.2 billion… However, despite the massive scope of this industry, Georgia… TPLF is subject only to the contract signed between the parties… there is no consumer protections for folks that engage in this type of arrangement.”

Kennedy emphasized that the lack of protections for consumers in Georgia has allowed bad actors to exploit plaintiffs:

“We’ve had aggrieved plaintiffs complain about their treatment by these third party litigation funders where people have been very unfair to them. In some cases, as I understand, Senator, so much so that the recovery of the third party litigation funder exceeded… And sometimes consumed the vast majority of the recovery in the plaintiff if the injured person doesn’t get anything.”

Finally, one of the key protections in Senate Bill 69 is ensuring that the third-party litigation funder’s recovery cannot exceed that of the plaintiff, as Kennedy said:

“One of the protections in here says that the recovery of the third-party litigation funder can’t be greater than that of the plaintiff. I mean, some very common sense.”