News and analysis dedicated to the consumer legal funding sector including mass torts, regulatory issues, case developments, funding activities, and more.

In an Independence Day editorial, the Alliance for Responsible Consumer Legal Funding (ARC) argues that meaningful freedom includes the ability of injured Americans to pursue their legal claims without financial desperation forcing them into unfair settlements. The piece positions consumer legal funding as a practical tool for keeping the outcome of a case tied to its facts rather than to a plaintiff’s bank balance.

Writing in the National Law Review, ARC president Eric Schuller contends that “justice delayed can quickly become justice denied when mounting bills force individuals into decisions they otherwise would never make.” Defendants, he argues, understand this dynamic and can use the length of the civil justice process to pressure vulnerable plaintiffs into accepting less than their claims are worth.

Schuller distinguishes consumer legal funding from commercial litigation finance and traditional lending. These are typically small, non-recourse advances — often $3,000 to $5,000 — used for everyday necessities such as rent, groceries, and medical bills while a claim proceeds. Because the funding is non-recourse, a consumer who loses the underlying case owes nothing. ARC’s guiding principle, he writes, is “Funding Lives, Not Litigation.”

The editorial also makes the case for responsible oversight, endorsing disclosure requirements, attorney acknowledgment, and prohibitions on funders influencing litigation strategy — safeguards intended to protect consumers while preserving their access to the tool.

The family at the heart of the Netflix documentary “Take Care of Maya” is now locked in a dispute with its former attorneys over the proceeds of a litigation loan, in a case that puts the mechanics of litigation finance in an unusually public spotlight. Jack Kowalski and his daughter Maya, whose ordeal with a rare chronic illness and a Florida hospital drew national attention, are challenging the fees claimed by the lawyers who once represented them.

As reported by Bloomberg Law, the dispute centers on a $42 million litigation funding loan and nearly $10 million in attorneys’ fees now in contention. The family’s current counsel alleges that the prior firm, AndersonGlynn LLP of Jacksonville, “committed flagrant, serious, and repeated violations of their professional, ethical, and fiduciary duties” during the representation. The matter is being heard in Florida’s Twelfth Judicial Circuit.

The fight illustrates a recurring tension in funded litigation: when sizable awards meet layered financing arrangements and contingency fees, the division of proceeds can become its own battleground. Disputes over how loan repayments, interest, and legal fees are calculated against a recovery are increasingly common as litigation finance scales.

For an industry often criticized for operating out of public view, the high profile of the Kowalski case offers a rare, concrete look at how litigation loans intersect with attorney compensation — and what can go wrong when the relationship between client, counsel, and funder breaks down.

A decade after he secretly bankrolled Hulk Hogan’s lawsuit that bankrupted Gawker, billionaire Peter Thiel is again funding an effort aimed at the press — this time through a startup that lets the wealthy pay to put reporters on trial before an artificial-intelligence “jury.” The venture, called Objection, was founded by Aron D’Souza, the lawyer who orchestrated the Thiel-financed campaign against Gawker, and launched in April 2026 with seed money from Thiel, Balaji Srinivasan, and venture firms Social Impact Capital and Off Piste Capital.

As reported by The Hollywood Reporter, Objection works as a private arbitration service. For a starting fee of roughly $2,000, a client can challenge a published article. Human investigators — ranging from recent graduates to former CIA and FBI agents — gather evidence, which is then assessed claim-by-claim by multiple large language models acting as jurors. The system issues an “Honor Index” score grading a journalist’s accuracy and integrity, and clients can pay extra to amplify favorable findings on social media.

The company’s first target is a Hollywood Reporter investigation, brought by a Purdue Pharma heir disputing 2021 coverage of his image as an ethical investor. Media lawyers and First Amendment scholars warn the model could chill reporting that relies on confidential sources, with one attorney describing it as “a high-tech protection racket for the rich and powerful.” The case underscores how litigation — and the money behind it — has become a tool to shape, and sometimes silence, coverage of the powerful.

Today, The Milestone Foundation, the only nonprofit organization providing fair and transparent litigation funding to plaintiffs, announced the honorees of its 2026 Compassionate Counsel Program.  

Now in its fourth consecutive year, the Compassionate Counsel Program recognizes trial lawyers who go above and beyond in serving their clients, not only as skilled legal advocates, but as trusted guides through some of the most difficult periods of their clients’ lives. Honorees are nominated by peers, clients, and organizations, and selected by a review panel evaluating each nominee against the program’s core criteria: putting clients’ wellbeing first, demonstrating empathy alongside legal skill, and upholding the highest standards of integrity in the pursuit of justice. This criteria collectively reflects The Milestone Foundation’s mission and values.  

“Trial lawyers who practice with compassion are the backbone of our civil justice system,” said Rachel McCarthy, Executive Director of The Milestone Foundation. “The Compassionate Counsel Program exists to celebrate those attorneys and to inspire every member of the plaintiffs’ bar to approach their work with the same humanity and commitment. We are proud to honor this year’s remarkable group of honorees as we mark a decade of impact for the Foundation.” 

The honorees will be formally celebrated at the Foundation’s 10-Year Anniversary Celebration on Saturday, July 25th at Avli on the Park in Chicago, Illinois.  

The 2026 Compassionate Counsel honorees are: 

Daisy Ayllón | Romanucci & Blandin 

Kate Feroleto | Feroleto Law 

Rayna Kessler | Robins Kaplan 

John Reagan | Kisling Nestico & Redick 

Laura Yaeger | Yaeger Law  

About the 2026 Compassionate Counsel Honorees 

Daisy Ayllón | Romanucci & Blandin 

Daisy Ayllón is a Partner at Romanucci & Blandin, where she represents individuals and families in cases involving sexual abuse, medical malpractice, civil rights violations, and other catastrophic injuries.  Daisy chose plaintiffs’ work because she believes working-class people, immigrant families, survivors, and people facing powerful institutions deserve excellent legal representation when they have been harmed. 

She played a leading role in representing more than 200 women in the widely reported Ortega sexual abuse matters, which resulted in substantial resolutions for the survivors. Daisy also served as first chair in a $15 million verdict against a school district for failing to protect a male student from sexual abuse by a teacher. She has played a role in other significant cases, including a $40 million verdict for a child left paralyzed after a botched surgery and a $35 million settlement for a girl injured at birth. For Daisy, “compassionate counsel” means pairing fierce advocacy with the patience, empathy, and care required to earn a client’s trust and pursue justice with humanity. 

Kate Feroleto | Feroleto Law 

Kate Feroleto is a nationally recognized trial lawyer and leader in personal injury and trucking litigation. A passionate advocate for injured individuals and their families, she is known for combining compassionate client representation with relentless advocacy against insurance companies and corporate defendants. 

Kate serves as President of the Western Region Affiliate of the New York State Trial Lawyers Association and Dean of the NYSTLA Trial Lawyers Institute. She is a member of the Academy of Truck Accident Attorneys and has held national leadership roles dedicated to advancing the representation of victims of commercial trucking crashes. In addition to her litigation practice, Kate is a frequent lecturer, mentor, and educator on catastrophic injury litigation, traumatic brain injury cases, trial advocacy, and trucking accident law.  

Rayna Kessler | Robins Kaplan 

Rayna Kessler is a Partner at Robins Kaplan and Deputy Chair of the firm’s National Mass Tort Group. A nationally recognized leader in emerging mass tort litigation and advocacy for survivors of child sexual abuse, she has held court-appointed leadership roles in complex, high-profile matters including the Taxotere, Abilify, and Olmesartan multi-county litigations. She currently serves as MDL Liaison Counsel in the Exactech knee and hip replacement litigation in the Eastern District of New York. 

In October 2025, Rayna secured a $5 million jury verdict on behalf of a survivor of child sexual abuse against the Order of St. Benedict of New Jersey, which operates the prestigious Delbarton School in Morristown. The verdict is the first known in New Jersey against an entity of the Catholic Church for the sexual abuse of a minor, marking a significant milestone in institutional accountability litigation. 

John Reagan | Kisling Nestico & Redick 

John J. Reagan is a Partner at Kisling, Nestico & Redick (KNR), where he devotes his practice exclusively to personal injury, wrongful death, insurance coverage, bad faith, and class-action litigation. He brings a rare dual perspective to plaintiff-side work, having spent more than a decade as lead trial counsel defending national insurance companies, product manufacturers, and trucking companies — including being a shareholder for nearly ten years at one of Ohio’s largest regional defense firms. 

That background shifted when John took on a seriously injured motorcycle accident victim whose own insurer denied his claim. John secured a six-figure jury verdict well in excess of policy limits, then obtained an additional substantial settlement against the same carrier for bad faith claims handling. The experience reoriented his practice toward representing individuals, and he joined KNR in 2010. Since then, John has secured significant recoveries for clients in personal injury, wrongful death, and insurance bad faith matters.  

Laura Yaeger | Yaeger Law 

Founder of Yaeger Law and Yaeger Legal Consulting, Laura Veronica Yaeger is a lawyer, consultant, educator, and nationally recognized leader whose career has been defined by a commitment to helping others. For more than 25 years, Laura has represented individuals harmed by defective medical devices, dangerous pharmaceuticals, toxic substances, and other forms of negligence.  

A dedicated servant leader, Laura has devoted more than two decades of service to the American Association for Justice (AAJ). She currently serves as AAJ Parliamentarian and is a past Chair of the Women’s Trial Lawyers Caucus, co-founder and past Chair of the LGBT Caucus, former member of the Executive Committee, and longtime member of the Board of Governors. She is also a graduate of AAJ’s Leadership Academy and has served on numerous committees and leadership initiatives dedicated to strengthening the organization and expanding opportunities for others. Laura’s contributions to the legal profession have earned her numerous honors, including the AAJ Harry Philo Award in 2021 for outstanding contributions to the civil justice system and the Richard D. Hailey Distinguished Service Award in 2025 for her years of exceptional service and leadership. She also serves on the Board of Directors of the Florida Justice Association. 

About The Milestone Foundation 

The Milestone Foundation is a 501(c)(3) nonprofit organization providing an ethical funding solution to individuals pursuing justice after suffering a catastrophic incident. Through simple interest-only rates, attorney collaboration, and a mission-driven approach, the Foundation provides plaintiffs with fair access to the financial resources they need to pursue justice. For more information, visit https://themilestonefoundation.org/.    

As states such as Illinois move to restrict non-lawyer ownership of law firms, defenders of alternative business structures are pushing back, arguing that ABS models expand access to justice for consumers and small businesses that traditional firms have little economic incentive to serve. The debate goes to the heart of how technology and outside capital should reshape the delivery of legal services.

As reported by Bloomberg Law, Matt Freund, co-founder and chief executive of Arizona ABS-licensed firm ClaimsHero, contends that conventional firms lack the incentive to handle consumer protection and wage-theft claims where clients cannot afford hourly billing. ABS firms, he argues, combine legal expertise with technology to operate on contingency at scale, serving more than 100,000 clients at no cost to consumers through automated onboarding, eligibility screening, and client communication.

Freund counters concerns that non-lawyer ownership weakens oversight, asserting that ABS firms face stricter regulation than traditional practices. Entity-level licensing, he notes, creates firm-wide accountability, with semi-annual audits, biennial renewals, compliance-attorney requirements, and the risk of firm-wide suspension for ethics violations. He cites a 2025 Stanford Law School study finding that 85% of Arizona ABS firms target individual consumers and that there was “de minimis evidence of consumer harm.”

To address skeptics, Freund recommends entity-level regulation, feedback mechanisms, ownership transparency, and governance safeguards for attorney independence as a template for other states. The argument offers a direct counterpoint to the restrictive measures gaining traction in statehouses across the country.

Kansas has adopted a comprehensive framework for regulating consumer legal funding, with Governor Laura Kelly signing the Transparency in Consumer Legal Funding Act, House Bill 2518, into law. Commentators have positioned the statute, which takes effect July 1, 2026, as a model for other states weighing how to oversee the fast-growing consumer funding sector.

As reported by the National Law Review, the measure passed unanimously in both chambers of the Republican-controlled legislature before earning the Democratic governor’s signature, a rare show of bipartisan consensus on an issue that has drawn sharp debate elsewhere. The law defines consumer legal funding as a non-recourse transaction in which a company purchases a contingent interest in the proceeds of a legal claim, and it expressly states that such funding is not a loan and is not subject to lending laws.

The statute builds in extensive consumer protections, including a 10-business-day rescission period without penalty, plain-language contract requirements, full disclosure of all charges and the maximum repayment amount, and mandatory attorney acknowledgment. It also bars referral fees and kickbacks, prohibits misleading advertising, and restricts funding companies from influencing litigation decisions.

On transparency, the law requires disclosure of funding agreements upon request by parties and insurers while shielding attorney-funder communications from discovery. Supporters describe that balance as the statute’s central achievement: protecting consumers through disclosure and accountability while preserving access to funding and safeguarding attorney independence, a template lawmakers in other states may look to replicate.

Kansas has become the latest state to adopt a regulatory framework for consumer legal funding, with Governor Laura Kelly signing the Transparency in Consumer Legal Funding Act into law. The measure passed with unanimous bipartisan support in both chambers of the Kansas legislature and establishes baseline standards for how consumer legal funding companies operate in the state.

According to EIN Presswire, the new law affirms that consumer legal funding is not a loan and codifies several consumer protections. Those include a 10-day cancellation window allowing consumers to rescind agreements without penalty, a non-recourse structure ensuring consumers owe nothing if their case is unsuccessful, and a requirement that contracts be written in plain language. Funding companies must also provide full financial disclosure of funded amounts, fees, and maximum repayment schedules.

The statute additionally prohibits funders from influencing settlement decisions or the direction of litigation, preserving attorney independence and client control over case strategy. A referral fee ban eliminates kickbacks to attorneys or medical providers, addressing a long-standing concern among industry critics.

Eric Schuller, President of the Alliance for Responsible Consumer Legal Funding, called the legislation “a thoughtful, balanced framework that ensures consumers fully understand their agreements while preserving access to critical financial support during litigation.” The Kansas law adds to a growing patchwork of state-level consumer legal funding regulations and reflects continued momentum toward standardized disclosure requirements across the industry.

Pre-settlement funding provider Legal Bay has released an update on several major Catholic Church diocese bankruptcy settlements that are approaching the payout phase after years of delays in bankruptcy courts.

As reported by PR Newswire, the firm is tracking six diocesan bankruptcies where survivors of clergy abuse are awaiting resolution. Among the cases closest to distributing funds are the Diocese of Rockville Centre in New York with a $323 million court-approved settlement, the Diocese of Rochester with a $246–$256 million approved settlement, and the Diocese of Syracuse with a $176 million approved settlement.

Three additional cases remain pending court approval: the Diocese of Camden, New Jersey at $180 million, the Archdiocese of New Orleans at $230 million, and the Diocese of Buffalo with a proposed settlement ranging from $150 million to $274 million.

Legal Bay CEO Chris Janish said the company receives daily requests from clients seeking updates and “felt it was important to provide a clear snapshot of which cases are closest to reaching the payout stage.” The firm provides settlement funding and lawsuit loans to abuse survivors facing financial hardship during the prolonged litigation process.

The update underscores the continued role of pre-settlement funding in mass tort cases where claimants often wait years for bankruptcy proceedings to conclude before receiving compensation.