Section 9:3580.5 - Third-party litigation funding; prohibitionsIt shall be unlawful for any foreign third-party litigation funder to engage in any of the following:
(1) Knowingly enter into an agreement creating a right for anyone, other than the named parties, counsel of record, or law firm of record, to receive or make any payment that is contingent on the outcome of a civil action or any matter within a portfolio that includes the civil action and involves the same counsel of record or affiliated counsel, the terms of which are to be satisfied by funds directly sourced, in whole or in part, from a foreign entity.(2) Direct or make any decisions with respect to the course of any civil action for which the litigation funder has provided funding intended to defray litigation expenses or the financial impact of a negative judgment related to the civil action. This prohibition includes but is not limited to decisions in appointing or changing counsel, choice or use of expert witnesses, litigation strategy, and settlement or other disposition.(3) Be assigned rights to or in a civil action for which the litigation funder has provided funding intended to defray litigation expenses related to the civil action or the financial impact of a negative judgment, other than the right to receive a share of the proceeds pursuant to the litigation financing agreement.Added by Acts 2024, No. 765,s. 1, eff. 8/1/2024.