Ethics/Professional Responsibility
Sep. 22, 2026
Newsom signs law limiting litigation funders' control over cases
AB 2305 bars private equity firms and other litigation funders from influencing case strategy or settlements and gives the State Bar authority to pursue violations.
Gov. Gavin Newsom has signed legislation restricting the influence private equity firms, hedge funds and other outside investors can exercise over lawsuits in California. AB 2305 is part of a national trend of state legislation limiting financial arrangements but also goes further than recent laws in some other states.
The law will prevent litigation funders from directing or influencing substantive decisions in cases they finance, including settlement decisions. The measure resp...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$895, but save $100 when you subscribe today… Just $795 for the first year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In