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california Senate - Jobs & The Economy
SB-581 (2023-2024)
Third-party litigation financing
District 14 - Senator Caballero
Purpose
Creates transparency and accountability for companies that engage in third party litigation financing (TPLF), that lends money to injured plaintiffs in order for them to charge exorbitant interest rates and fees.
Creates transparency and accountability for companies that engage in third party litigation financing (TPLF), that lends money to injured plaintiffs in order for them to charge exorbitant interest rates and fees.
History 05/18/23 - Hearing: Held in committee and under submission.
Votes: 05/08/23 (PASS) - Sen Appropriations - Ayes: 7, Noes: 0, NVR: 0 - Placed on suspense file.
Votes: 05/08/23 (PASS) - Sen Appropriations - Ayes: 7, Noes: 0, NVR: 0 - Placed on suspense file.
Position
- Recommended Position: Support
- Unregulated lawsuit lending hurts Businesses and individual Californians. Class action lawsuits against U.S. companies have more than tripled in the last decade. Lawsuit lending fuels frivolous lawsuits and drives up payouts, experts say, disproportionately hurting small businesses, which operate on thin margins and can be bankrupted by one big settlement. The average household pays a $3,300 “tort tax” annually due to unnecessary and abusive lawsuits. That’s less money for businesses to grow, and for consumers to spend. Lawsuit lending erodes profit margins, as businesses must set aside money for injury funds rather than invest in growth.
Read the official bill. Click Here