Consumer Law
Jan. 2, 2026
AB 931: Regulating litigation funding and fee-sharing
Brian S. Kabateck
Founding and Managing Partner
Kabateck LLP
Consumer rights
633 W. Fifth Street Suite 3200
Los Angeles , CA 90071
Phone: (213) 217-5000
Email: bsk@kbklawyers.com
Brian represents plaintiffs in personal injury, mass torts litigation, class actions, insurance bad faith, insurance litigation and commercial contingency litigation. He is a former president of Consumer Attorneys of California.
AB 931, signed as Chapter 565, Statutes of 2025, establishes California's first comprehensive regulatory framework for consumer legal funding while prohibiting fee-sharing with out-of-state alternative business structures. Effective Jan. 1, 2026, the law reshapes two fast-evolving areas of practice that have long operated in regulatory gray zones.
Consumer legal funding--where companies purchase plaintiffs' contingent rights to settlement proceeds--has provided financial su...
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