A new trade association has launched with the goal of giving the litigation finance industry a stronger and more coordinated voice in Washington as lawmakers renew scrutiny of third-party funding. The American Civil Accountability Alliance has been formed to push back against what its founders describe as growing political and legislative hostility toward litigation finance, particularly on Capitol Hill.

An article in Bloomberg Law reports that the alliance was announced in early January by lawyers Erick Robinson and Charles Silver, who say the organization will focus on educating lawmakers and policymakers about the role litigation funding plays in promoting access to justice. According to the founders, third-party capital allows plaintiffs to pursue complex and costly claims that would otherwise be financially out of reach, helping to balance disparities between individual or corporate claimants and well-resourced defendants.

The group is launching at a time when litigation finance has faced an uptick in proposed regulation. In 2024, Senate legislation nearly imposed a steep tax on litigation funding profits, a proposal that funders warned would have severely damaged the industry had it passed. Although that measure was ultimately removed from a broader legislative package, additional proposals continue to circulate in Congress, including bills aimed at mandating disclosure of funding arrangements and restricting foreign investment in U.S. litigation.

The American Civil Accountability Alliance plans to position itself as an active counterweight to these efforts. The organization intends to hire a Washington-based lobbyist and expand its membership beyond funders to include law firms, litigators, and other stakeholders involved in the civil justice system. In doing so, it joins the International Legal Finance Association as one of the few organized advocacy groups representing the industry’s interests at the federal level.

Legal Bay has praised New York Governor Kathy Hochul for signing the New York Litigation Funding Act into law, describing the legislation as a landmark step that finally provides a clear regulatory framework for consumer litigation funding in the state. The new law represents a significant development for an industry that has operated for years amid legal uncertainty in one of the country’s most active litigation markets.

A Legal Bay press release notes that the legislation establishes a comprehensive set of consumer protections and regulatory standards governing litigation funding transactions in New York. Legal Bay characterized the law as the product of more than two decades of policy development and sustained advocacy efforts by industry participants and consumer access to justice groups. The company emphasized that the statute provides long needed clarity by formally recognizing consumer litigation funding as a non recourse financial transaction rather than a traditional loan.

Under the new framework, funded plaintiffs are only required to repay advances if they obtain a recovery in their legal claims. Supporters of the law argue that this distinction is critical in protecting consumers from additional financial risk while ensuring that individuals with meritorious claims are able to cover basic living expenses during the often lengthy litigation process. Legal Bay highlighted that litigation funding can help plaintiffs avoid accepting early settlements driven by financial pressure rather than the merits of their cases.

Legal Bay also acknowledged the role played by New York lawmakers in advancing the legislation through the state legislature, noting that the law strikes a balance between consumer protection and preserving access to funding. According to the company, the statute promotes transparency, fairness, and stability in a market that continues to grow in both size and sophistication.

Invenio has announced the addition of John J. Hanley as a partner, bolstering the firm’s bench in litigation finance, claim monetization, and structured finance. Hanley joins Invenio with a practice that sits squarely at the intersection of complex commercial litigation and sophisticated financial structuring, advising a wide spectrum of market participants including litigation funders, claimholders, law firms, hedge funds, investment funds, and specialty finance providers.

According to Invenio's website, Hanley brings a particular focus on structuring, negotiating, and executing advanced funding arrangements across the full litigation finance lifecycle. His experience spans single-case funding, portfolio transactions, and bespoke claim monetization structures, with a notable specialization in prepaid forward purchase agreements. In addition, Hanley has advised extensively on secured lending transactions involving banks, commercial lenders, and alternative capital providers—experience that aligns closely with the hybrid legal-financial nature of modern litigation funding deals.

A post on LinkedIn announcing the move highlights that Hanley’s practice is designed to support both the capital side and the legal side of funded disputes, an increasingly important capability as funding arrangements grow more complex and interconnected with broader capital markets. His background enables him to navigate not only the legal risks inherent in funding structures, but also the financial and regulatory considerations that sophisticated investors expect to see addressed at the outset of a transaction.

Malaysia has officially overhauled its legal framework for third-party funding in arbitration, marking a significant development in the country’s dispute finance landscape. Effective 1 January 2026, two key instruments, the Arbitration (Amendment) Act 2024 (Act A1737) and the Code of Practice for Third Party Funding 2026, came into force with the aim of modernising regulation and improving access to justice.

An article in ICLG explains that the amended Arbitration Act introduces a dedicated chapter on third-party funding, creating Malaysia’s first comprehensive statutory foundation for funding arrangements in arbitration. The reforms abolish the long-standing common law doctrines of maintenance and champerty in the arbitration context, removing a historical barrier that could render funding agreements unenforceable on public policy grounds.

The legislation also introduces mandatory disclosure requirements, obliging parties to reveal the existence of funding arrangements and the identity of funders in both domestic and international arbitrations seated in Malaysia. These changes bring Malaysia closer to established regional arbitration hubs that already recognise and regulate third-party funding.

Alongside the legislative amendments, the Code of Practice for Third Party Funding sets out ethical standards and best practices for funders operating in Malaysia. The Code addresses issues such as marketing conduct, the need for funded parties to receive independent legal advice, capital adequacy expectations, the management of conflicts of interest, and rules around termination of funding arrangements. While the Code is not directly enforceable, arbitral tribunals and courts may take a funder’s compliance into account when relevant issues arise during proceedings.

The Legal Affairs Division of the Prime Minister’s Department has indicated that this combined framework is intended to strike a balance between encouraging responsible third-party funding and improving transparency in arbitration. The reforms also respond to concerns raised by high-profile disputes where funding arrangements were not disclosed, highlighting the perceived need for clearer rules.

ProLegal, formerly operating as Pro Legal Funding, has announced a strategic rebrand and expansion that reflects a broader vision for its role in the legal services ecosystem. After nearly a decade in the legal finance market, the company is repositioning itself not simply as a litigation funder, but as a comprehensive legal support platform designed to address persistent structural challenges facing plaintiffs and law firms.

The announcement outlines ProLegal’s evolution beyond traditional pre-settlement funding into a suite of integrated services intended to support cases from intake through resolution. Company leadership points to longstanding industry issues such as opaque pricing, misaligned incentives, and overly transactional relationships between funders, attorneys, and clients. ProLegal’s response has been to rethink its operating model with a focus on collaboration, transparency, and practical support that extends beyond capital alone.

Under the new structure, ProLegal now offers a range of complementary services. These include ProLegal AI, which provides attorneys with artificial intelligence tools for document preparation and case support, and ProLegal Live, a virtual staffing solution designed to assist law firms with intake, onboarding, and administrative workflows.

The company has also launched ProLegal Rides, a transportation coordination service aimed at helping plaintiffs attend medical appointments that are critical to both recovery and case valuation. Additional offerings include a law firm design studio, a healthcare provider network focused on ethical referrals, and a centralized funding dashboard that allows for real-time case visibility.

Central to the rebrand is what ProLegal describes as an “Integrity Trifecta,” an internal framework requiring that funding advances meet standards of necessity, merit, and alignment with litigation strategy. The company emphasizes deeper engagement with attorneys, positioning them as strategic partners rather than intermediaries.

A Croton-on-Hudson-based litigation financier has filed suit against a former client following a roughly $1 million settlement, alleging the funded party failed to honor the repayment terms of their litigation funding agreement. The dispute highlights the contractual and enforcement challenges that can arise once a funded matter reaches resolution.

According to Westfair Online, the financier provided capital to support a plaintiff’s legal claim in exchange for a defined share of any recovery. After the underlying litigation concluded with a significant settlement, the funder alleges that the plaintiff refused to authorize payment of the agreed-upon amount. The lawsuit claims breach of contract and seeks to recover the funder’s share of the settlement proceeds, along with any additional relief available under the agreement.

The case underscores a recurring tension within the litigation funding ecosystem. While funders assume substantial risk by advancing capital on a non-recourse basis, they remain dependent on clear contractual rights and post-settlement cooperation from funded parties. When those relationships break down, enforcement actions against clients, though relatively uncommon, become a necessary tool to protect funders’ investments.

For industry participants, the lawsuit serves as a reminder that even straightforward single-case funding arrangements can result in contentious disputes after a successful outcome. It also illustrates why funders increasingly emphasize robust contractual language, transparency around settlement mechanics, and direct involvement in distribution processes to reduce the risk of non-payment.

New state laws taking effect across the Southeast at the start of 2026 include significant changes for insurers and litigation finance, with Georgia’s new restrictions on third-party funding standing out as particularly consequential for the legal funding industry.

Insurance Journal reports that in Georgia, newly effective legislation imposes a formal regulatory framework on litigation funders operating in the state. Funders are now required to register with the Georgia Department of Banking and Finance and disclose ownership information, including details related to foreign affiliations. The law also restricts funders from exercising control over litigation strategy, barring involvement in decisions such as attorney selection, settlement authority, or expert witness engagement. In addition, litigation funding agreements must be disclosed during discovery in civil cases, increasing transparency around third-party capital in litigation.

Beyond litigation finance, the Georgia law package includes changes affecting insurers, including provisions preventing auto insurers from canceling coverage or increasing premiums solely due to a failure to wear a seat belt. Other updates require certain home warranties, including heating and air-conditioning systems, to transfer automatically to new homeowners.

Elsewhere in the region, Florida enacted new requirements for pet insurers to provide clearer explanations of coverage terms and claim denials. Florida also implemented a law creating a public registry of individuals convicted of animal cruelty, which could influence liability and insurance disputes. South Carolina revised its liquor liability framework by reducing coverage requirements and limiting exposure for businesses found less than 50 percent at fault.

Slater and Gordon has announced the renewal of its committed financing facility with Harbour, securing an enhanced £30 million loan agreement that strengthens the firm’s financial position and supports its ongoing strategic plans.

According to Slater and Gordon, the facility replaces the previous arrangement and will run for at least three years, underscoring the depth of the relationship between the firm and Harbour, a long-standing provider of capital to law firms.

The renewed financing follows a £30 million equity raise earlier in 2025 and is intended to provide financing certainty as Slater and Gordon continues to invest across its core practice areas and enhance its client service offering. Chief executive Nils Stoesser highlighted the progress the business has made in recent years and said the renewed facility provides confidence as the firm pursues its longer-term strategic priorities.

Ellora MacPherson, Harbour’s managing director and chief investment officer, described the commitment as the next stage in a constructive and established partnership. She noted Harbour’s support for Slater and Gordon’s ambitions, particularly around improving service delivery and outcomes for clients.

Over the past two years, Slater and Gordon has focused on strengthening its family law, employment, and personal injury practices, while also expanding its capacity to handle large-scale group actions. The firm has also continued to invest in technology and operational improvements aimed at improving the overall client experience.