Third-Party Litigation Financing - Licensing and Regulation

SB 894 requires third-party litigation financiers (companies that fund lawsuits in exchange for a share of settlements) to obtain licenses under Maryland's consumer loan laws before providing financing. It mandates that all parties in a civil case must immediately disclose litigation financing contracts to other parties and insurers, regardless of whether a case has formally started. The bill also allows courts to consider financing details during discovery and classifies such financing as a loan subject to existing consumer lending regulations. These rules directly affect plaintiffs, attorneys, and financiers by increasing transparency in how lawsuits are funded.