FL S1396

Creates the "Litigation Investment Safeguards and Transparency Act" establishing new regulations for third-party litigation financing in Florida, effective July 1, 2026

Requires parties or attorneys with litigation financing agreements involving foreign persons, foreign principals, or sovereign wealth funds to disclose the funding relationship, funder identity, and any foreign entity owning 3% or more of the financier within 14 days of execution

Prohibits litigation financiers from directing litigation decisions, receiving a larger share of proceeds than plaintiffs receive after attorney fees, paying referral fees, or assigning/securitizing financing agreements

Bars foreign litigation financiers from using domestic entities to evade disclosure requirements or sharing proprietary, privileged, or national security-related information obtained through litigation financing with foreign entities

Makes litigation financing agreements executed in violation of the act void and unenforceable, with violations constituting deceptive trade practices under Florida law and subject to court-imposed sanctions