LITIGATION FINANCING TRANSPARENCY ACT

HB 312, the "Litigation Financing Transparency Act," requires legal counsel to disclose litigation financing agreements to all represented clients within 30 days of entering such an agreement. It directly affects litigation financiers (who provide funding for lawsuits), legal counsel, and "funded consumers" (clients whose cases are financed). Key provisions prohibit financiers from controlling case strategy, paying referral fees, or assigning agreements, while mandating full transparency about funding terms. The bill is pending in New Mexico and has not yet become law, as its most recent action (June 3, 2025) postponed it indefinitely.